tragicomix

Do U.S. Policymakers Have a Clue About the Economy?

Absolutely rue for Paulson, true for many others, but not quite so for the ECB.

Surely then markets did not have a clue when they pushing oil to $150/bbl and all other commodities sky high ... given that there was a whopper of a recession coming? If your argument is that Bernanke & Co were more prescient, then they were so farseeing that they cut interest rates so hard that it became that much easier to shove the liquidity onto commodities. And now the Fed does not have any room to cut. The effective fed rate is 0.3%, so what does it matter if he cuts the target rate to 0.5% or even 0.25% in December?

You also pass over the geniuses on Wall Street who manufactured this house of cards and their partners in DC who kept milimg the gift of mortgage ... or for that matter Chris Dodd who sure did not have a clue when he took subsidized mortgages thru "Friends of Angelo"