Agoracom

Markets didn't react well to the FOMC yesterday...so they gotta be whipped into the correct action today. Man...so unusual.

So let's see now...Bernanke said we still got some inflation issues...but those should be moderating in the months ahead....gee...never heard that before. So the FED lowers another .25 point to 2%. I thought...according to modern day 'economics'...that lowering interest rates actually stokes inflation? Hasn't inflation gone up since the last time the FED pushed rates this low...even with 'honest' gov't figures? Oh... never mind. Then we have the reconstructed M3 running at its highest rate in history...over 17% annually. Ah... that's money supply...isn't it? Then we have the FED issuing massive loans into the banking system and taking on 'securities' with uncertain value as collateral. Sounds like more money coming into the system? Then of course....not to be left out of the monetary orgy...the US Gov't is sending out billions in rebate giveaways to 'help the economy'.

Yeah...ok....I get it now....all this stuff should cause inflation to moderate in the future. And according to the news this week...housing is still falling off the cliff and the economy is headed lower....and fast.

And of course, to prove that the markets get it too... commodities across the board getting wiped....miners and materials getting sold hard...and the dollar is flying....and stocks are flying...lead by the financials, tech and the homey's.

Rod would be proud....you gotta love it....