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Thursday, January 24, 2008

Was Trichet tipped?

Did SocGen tell Trichet that they had this $7 billion problem on their books? That would explain his steely presence in the face of the rout. And now, he can use the guise of economic conditions to lower rates, when he feels economic conditions allow it.

The ECB doesn't micromanage like the Fed. They left rates at 2% for 1 1/2 years, and raised them just to 4% while our Fed was going willy nilly down to 1%, and up to 5.25%.

And our markets go willy nilly on every Fed nuance.

It's better to be Oz than the tinman.

1 comment :

Anonymous said...

Art Cashen says on CNBC that its “very puzzling the central banks aren’t working in concert” yeah, like they should be dumb enough to do what the FED did?

Inflation hurts the everybody, especially the little guy. Didn’t the homeowners and speculators make enough money over the last few years. Lower home prices are a GOOD thing. It makes them more affordable.