This blog post originally appeared on RealMoney on Jan. 17 at 9:05 a.m. EST.
The reason you want to get ahead of the curve is that you don't want to come in and cut rates a week before a
Fed meeting on a day when the futures are down huge.
You
don't want to be seen as someone who responds to the futures.
Yet that's what just happened.
Finally, the Fed's Gotten Rational |
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I hate being in the "too little, too late" camp. This cut will help some refinance. But if consumers had been able to finance earlier, we would not have these astonishing defaults.
The real issue here is -- will it save
Countrywide (CFC Quote - Cramer on CFC - Stock Picks) or
Washington Mutual (WM Quote - Cramer on WM - Stock Picks). The answer is simple: They have a better chance surviving today than they did yesterday,
And in the end, that's good.
They should have gone a point instead of 0.75 -- that would have been the real deal, because that, at last, was more than expected. But it is difficult to have told
The Wall Street Journal three weeks ago that inflation problems are perhaps the more important issue and then cut a full point.
Again, though, three-quarters of a point beats nothing.
Cramer: This Fed Is Stupid |
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Jim Cramer
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