What's this? Sensible words from TSC?!?!
Article last night from Cramer et al. :
--------------------------------
'Tough Love: Greenspan Does the Right Thing by Not Giving In to the Market'
[ thestreet.com ]
Some quotes,
'...by not giving the market what it wanted (for a change), Greenspan did the right thing -- even if it resulted in more short-term pain for most investors. Perhaps, like some troubled children, the market realized it needed some discipline and responded positively (albeit mutely and delayed) to the paddling. At 10,495.28, the Dow closed about 70 points above its intraday low, while the S&P 500 closed at 1239.94 vs. its nadir of 1229.65. The Comp's session low was 2127.50. '
'Had Greenspan suggested an intermeeting rate cut was imminent (and it may yet occur), a short-term rally would have resulted, but one ultimately doomed to fail -- as was the advance following the Fed's intermeeting cut on Jan. 3. Market participants would have then returned to the Fed once again, hat in hand. Every time the Fed participates in this dance, it reinforces the moral hazard dilemma, and risks losing more credibility. The really scary scenario occurs when investors totally lose faith in the Fed's ability to stem declines, economic or market.'
' "Greenspan is being sensible, and his approach to monetary policy is even-handed and reflects conditions that don't necessitate a panic," said Doug Kass, general partner at Seabreeze Partners in Palm Beach, Fla. "In a perverse way, I view his inaction positively as it implies a more solid economy than previously thought."
-----------------------------
Amazing where you'll find pearls of truth sometimes!
We now return you to your regularly scheduled despair... |
