Quote:
Originally Posted by teomaxxx
Its stupid to make a rate cuts (aka lower value of US dollar) into major commodity bull. The price is to be paid by average "Joe Six Pack" few months later. The comming inflation will bring US into recession.
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It's has got to be a choice between inflation or a credit crunch teomaxxx.
The far more dangerous option would be a raising of rates and a credit crunch where it could then follow on to a recession - and all hell would break out.
The credit crunch is starting to show already and suspect that's why the Fed elected to cut the rate - ie the pressure is already on and it's damage limitation time. Would think they are likely to decrease the rate further in the near future - and prob before the last quarter economic figures are published. (The quarter just passed was actually OK - 3.9%, but kinda wiped out by other things and the current quarter is expected to be utter crap - so suspect the Fed will step in again.)