Will they or won’t they… lots of talk about the Fed meeting tomorrow. Cramer was “demanding” that they lower rates – all his friends were losing their jobs and going out of business. However, as someone else pointed out, the Fed really only looks out for regulated banks, not the non-banks or near-banks (hedge funds, investment banks, etc.). Real banks aren’t in such bad shape, apparently.
Praying for a Rate Cut and Missing the Point
lower rates won’t prevent people from having to face the consequences of making bad investments and getting over leveraged; nor is it the job of the Fed to ensure that investors who made stupid decisions continue to make money and don’t lose their shirts. Lowering interest rates and increasing the money supply is what led us down the path to creating a credit bubble in the first place. Lowering them again isn’t going to help matters, it’s only going to make things worse and lead us down the path towards an even greater calamity.
Bernacke watches Cramer? Should be interesting.