The market is once again pricing in a rate cut and is firming. It's amazing that so many investors think a rate cut will solve this mess. You will get a small rally when it happens but it will quickly fizzle.
Never mind 1987, this reminds me of 1929 when banks and big investors, led by J.P. Morgan, tried to bail the market out of the mess that led to the dirty 30s. This time around the banks have more friends, like the IMF, brokerages and their paid touts (Abby Joseph Cohen will live in infamy after this debacle) and governments, but its still won't be enough to arrest the economic decline we face.
Of course the Asians and their corrupt leaders are most to blame for this, but Western banks (greed) and Greenspan, who is still fighting yesterday's battle (inflation), Clinton and his administration, all will come in for a large part of the blame as well.
It's sad when you think the sacrifices working people and average citizens have made over the last six or seven years, working longer hours for less pay, having to accept reduce government programs in the name of fighting deficits, will be rewarded by the "mother of all economic debacles". |
