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The Feds coming rate cut 1.00% or 0.50%, does it matter?

Posted by Adrian on March 18, 2008

Ben Bernanke and the Federal Reserve have lost control of the markets. They have shown that they have little care for US economy, inflation, the US dollar and the unfortunate people that have lost their homes and their wealth.

The USD will be depegged form most currencies, stagflation will increase and the US will fall into a severe and deep recession. Asia will slow down to fight inflation, Bank of China will reveal it’s losses connected the subprime disaster. European banks UBS and HSBC may be in major trouble.

I can’t see oil dropping on any US slowdown at all, oil and all other commodities will be that hedge on inflation. So if you are in that market, watch your ‘buy’ signals.

Bloomberg March 18th 2008

“Recent economic data suggests the first recession since 2001 may have begun in December or January. Harvard University economist Martin Feldstein, a member of the committee that officially declares when a recession has started, said last week that he believed a recession was under way and it could be the most severe since World War II.”

devaluing assets, increased price inflation = a zero to negative growth for the majority.

A sad disposition.

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