Filed under: Market matters, Economic data, Federal Reserve
Okay, I admit it, I was a bear. It’s not like I was the only bear in the market. There was no shortage of us. Any time you’ve read market commentary in the past couple of months, I’m sure you’ve come across analysts, economists, pundits who gave near doomsday scenario. I mean, can you spell Greenspan.
Guess what? The bears were right. There was cause to be concerned. There was cause to think the markets are headed down. There was cause to think all that because the signs to indicate so can be seen all over. Signs from the recession in the housing market, the credit crunch, to the recent employment report, the list only goes on. All of those indicate the U.S. economy may be in for rough times ahead. Today, the Federal Reserve proved the bears right with a half-point rate cut. It’s not a small move and is indicative of the fact that the Fed has been seeing the same signs and acted preemptively. It is actually rather obvious from the policy statement: “Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.”
Continue reading The bears were right … and wrong
Read | Permalink | Email this | Comments
Entries (RSS)