Thursday, November 1, 2007
The Fed cut rates for the second time in as many meetings. "Today's action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy ..." indicating that another cut may not come as readily. But what of all the worry we saw in August in the stock market and the subprime worries. Have they gone away? Have we relabeled it to the home equity line of credit worries. How about the fact that credit card debt is now getting attention since people are using advances to cover their new reset mortgage payments? Will we not believe there is a problem until Bank of America, Wachovia or Washington Mutual tell us it is time to worry? I think people need to get more acquainted with the economy and less concerned with whether Britney gets custody.
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