I haven't checked Naz or the S&P, but I do know that the Dow Industrials are not below water for the calendar year. Until all major indexes are below the year's lows, I doubt that the Fed will do much of anything.
There are loads of troubling tea leaves, to be sure, but I think that the real gnashing of teeth and pulling of hair has barely begun. Until a major house fails, Lehman being the likeliest candidate, IMO, and more concrete signs of adversity become apparent, i.e., higher unemployment, a few hedge funds blowing up, etc., [all of which will happen, esp. the etc. part], the Fed is justified in doing nothing. |
