WTF????
Is our Fed this brain dead? Do they not recognize the financial contagion that is taking place everywhere? We started with defaults in subprime and the resultant contagion in commercial paper and asset backed securities. Then we had the blow ups in private equity buyout financing, and accelerating default rates in credit cards, student loans, and automobile receivables. Now the cracks in the commercial, and the worldwide real estate market are visible to even the Pollyanna's.
Friday, the unemployment rate increases, and today, we find out that the consumer isn't using their ATT phone or going out to eat at Chili's. Couple that with today's rumours of Countrywide's bankruptcy while the bond insurers stare at the precipice of the cliff of capital shortages.
Meanwhile the Fed fiddles, while Wall Street burns.
What is this Fed thinking?
A few months ago, we just had to worry about the financial problems facing Wall Street. But now the incrementalism approach of the Fed has given us economic headline risk.
WTF???
1 comment:
I told you the market would plummet, but you didn't listen. Got puts?
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