User 86945

U.S. Dollar Paradigm Shift Underway

Here is what Mr. Krause wrote on his blog said back on Friday, October 26, 2007

"Is the market misreading the FOMC?

I am in total disbelief that the talking heads, hedge funds, and powers that be are betting so much on the fed cutting here (even 25bp) despite their past move being 50bp. The FOMC executed their last cut after a dismal jobs report, and during commercial paper crisis which resulted in a flight to 90 day bills not seen since the crash of 87!

What's different now? We aren't in credit crisis anymore. The commercial paper market, despite not being what it once was, stabilized somewhat. The unknowns of subprime asset writedowns are much more known than before (despite being worth 18 cents on the dollar versus 38-42 cents at mid august)."

Yeah, back in Oct 07, the USA was no longer in a credit crisis! Wow. Does this guy have any credibility left after that memorable statement?