Promod Radhakrishnan

A Sensible and Refreshing Move from the Fed

Reinko, pardon my exuberance associated with a good day at the market. I just though a massive up-day after long gloomy weeks deserved some cheer.

As for macro economics, i cannot agree more with you on the fact that deficit budgets, over reliance on consumer spending and over dependence on foreign investment in treasuries and US assets won't keep the economy stable and growing for long. There are obvisouly fundamental changes required - hopefully some of that to start coming with the next government in power. However, we are not really in a time where we could/should cry over macr economic ills and the fact that a crash is bound to happen. All said, i don't hold a view that a 200 bn kitty is enough to avoid slow down or recession completely. However, we need the establishment to think forward, think positive and take steps that would smoothen the slow down and make it bearable for the economy and all of us. If we keep a prudish you-did-wrong appraoch with the money center banks, how would you expect them to lend for homes and education...and in that case, how would you expect the economy to stay resilient.

Just to recap - this single Fed move won't make for a turn of the tide. However, we need multiple steps like these to bring some sanity to the credit/fixed income markets.

Tony, likd your story :-)