The Fed Blew It

Yeah, we will work our way through this. But now, with only a quarter-point cut, we will no longer be able to forestall the bankruptcies. Banks are holding on for dear life, homebuilders the same. But their lifeline just got choked and far fewer will live because of this.

Lots of times people talk about stock traders being complacent. Lots of times you hear about bullish money managers that are way too excited about stocks.

But I have never heard a statement from a more bullish group of people in my life. They genuinely think that inflation remains a big problem.

I am aghast.

As my good friend Bob Marcin says, "They blew it."

Simple as that.

A simple 25 basis points more would have made a tremendous difference for the economy's psyche. It would have showed the Fed is on the case.

Now, what it says is simple: We aren't aware of what's going on in banking. We see good employment and lots of construction cranes. We are fine. Relax already.

Somehow, I am not assuaged. You shouldn't be either.