The Fed's Move

The Fed did not take my advice, but they did signal that today’s 25 basis point cut was the last for a while. At this writing the dollar has moved up to 1.53 against the Euro (it was 1.60 the other day), oil is down more than $2 to $113.50 (it was $120 the other day) and gold is down again to below $870. Maybe the speculators are realizing the easy money train has left the station

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0 Responses to The Fed's Move

  1. Clay Bridges says:

    USD 104.53 per euro sounds a little steep, at least for 2008. 😉 As of this comment, Yahoo finance has it at 1.56.

  2. John Hurt says:

    Bankers Are Just Like Anybody Else, Except Richer

    This is a song to celebrate banks,
    Because they are full of money and you go into them and all you hear is clinks and clanks,
    Or maybe a sound like the wind in the trees on the hills,
    Which is the rustling of the thousand dollar bills.
    Most bankers dwell in marble halls,
    Which they get to dwell in because they encourage deposits and discourage withdrawals,
    And particularly because they all observe one rule which woe betides the banker who fails to heed it,
    Which is you must never lend any money to anybody unless they don’t need it.
    I know you, you cautious conservative banks!
    If people are worried about their rent it is your duty to deny them the loan of one nickel, yes, even one copper engraving of the martyred son of the late Nancy Hanks;
    Yes, if they request fifty dollars to pay for a baby you must look at them like Tarzan looking at an uppity ape in the jungle,
    And tell them what do they think a bank is, anyhow, they had better go get the money from their wife’s aunt or ungle.
    But suppose people come in and they have a million and they want another million to pile on top of it,
    Why, you brim with the milk of human kindness and you urge them to accept every drop of it,
    And you lend them the million so then they have two million and this gives them the idea that they would be better off with four,
    So they already have two million as security so you have no hesitation in lending them two more,
    And all the vice-presidents nod their heads in rhythm,
    And the only question asked is do the borrowers want the money sent or do they want to take it withm.
    Because I think they deserve our appreciation and thanks, the jackasses who go around saying that health and happiness are everything and money isn’t essential,
    Because as soon as they have to borrow some unimportant money to maintain their health and happiness they starve to death so they can’t go around any more sneering at good old money, which is nothing short of providential.

    Ogden Nash

  3. Morgan Warstler says:

    It might have to do with the fact that the damn economy actually grew .6%, which again puts things in context.

    So here we go, I’ll say it: what IF America’s economy is actually stronger on the fundamentals (less governemnt, more capitalism) and so by comparison, we have lots of padding. And things have been so good for so long, that we too quickly disrepect the lessons of the past, say 1970’s (get rid of Carter) and pretend our crisis are just as bad, and owe Reagan a debt of gratitude.

  4. Detlef says:

    Tiny nitpick, :)

    Where did you find that “the dollar has moved up to 1.53 against the Euro”? That would have been definitely newsworthy.
    All I can see is some fluctuation between 1.55 and 1.56 today. With 1.56+ after the FED decision was announced.

  5. John Hurt says:

    Morgan I am so much more advanced than you because I am so much younger. You are a 2.0 type human while I am about a 3.4 type human, which was, by the way, approximately my grade point average at university which is not that bad considering I never attended a single class.

    PS I also went to St Johns to read. Which one did you go to?

  6. Morgan Warstler says:

    Santa Fe. I didn’t go there to read. Just ended up reading. And I’m probably a sub-2.0 type if we are correlating by GPA. Though I was just as good at skipping class.

  7. John Hurt says:

    I think we are arriving at a powerful consensus. I seriously think we can figure this whole thing out. Well, not me, but you guys. I think you guys can figure it out.

    And what else is there to do at St Johns besides read? (And speaking of reading, did you happen to notice that Ogden Nash poem above?)

  8. Morgan Warstler says:

    It is a nice poem, though I don’t remember “Ogden Nash” for poetry. Mostly, I just remember Cheech Marin and Don Johnson phoning it in. Gone were the heady brilliant days of Miami Vice and Up in Smoke.

  9. Captison says:

    If you don’t remember Ogden for poetry, what do you remember him for?

    “Everybody Tells Me Everything”
    by Ogden Nash

    I find it very difficult to enthuse
    Over the current news.

    Just when you think that at least the outlook is so black that it can grow no blacker, it worsens,
    And that is why I do not like the news, because there has never been an era when so many things were going so right for so many of the wrong persons.

  10. John Hurt says:

    Thank you for that, Captison.

    While people complain of how Hollywood is destroying the moral fiber of the country or some Pollyannaism along those lines, the thing I find the most dreadful about Hollywood is that bad guys win big all day long.

  11. Hugo says:

    As Providence goes, Rhode Island is fine but Bernanke’s my man. He makes such good points, and always with a sound basis! Even his name bucks me up with confidence. Bernanke. It sounds like a bank in Bern. Maybe even the one that held the Heiliger account. “Ben Bernanke: Son of a Swiss Bank”. Sounds so…firm. Make that Ben-Bullion for short. Big Ben. He’s our confidence man.

    “And all the vice-presidents nod their heads in rhythm…”

  12. John Hurt says:

    More About People
    by Ogden Nash

    When people aren’t asking questions
    They’re making suggestions
    And when they’re not doing one of those
    They’re either looking over your shoulder or stepping on your toes
    And then as if that weren’t enough to annoy you
    They employ you.
    Anybody at leisure
    Incurs everybody’s displeasure.
    It seems to be very irking
    To people at work to see other people not working,
    So they tell you that work is wonderful medicine,
    Just look at Firestone and Ford and Edison,
    And they lecture you till they’re out of breath or something
    And then if you don’t succumb they starve you to death or something.
    All of which results in a nasty quirk:
    That if you don’t want to work you have to work to earn enough money so that you won’t have to work.

  13. Hugo says:

    It’s a good thing Nash didn’t know about quarks. He’d have had a devil of a time with this poem.

  14. Hugo says:

    L.A., a place where “bad guys win big all day long”?

    Which of the following is responsible for the trains not running to South Central anymore?

    A) Nash

    B) Firestone

    C) Ford

    D) Edison

  15. John Hurt says:

    I would guess Firestone
    And I would not be alone
    Though it might have been Ford
    He was often untoward
    But it was certainly a shark
    And there is no place to park
    So there is only one quark
    For poor Muster Mark

  16. Hugo says:

    Hee-hee. Datso choice, it’s Joyce.

  17. John Hurt says:

    My favorite of the subatomic particles is the tachyon which, according to scientific lore, cannot be measured because it is moving so fast that as it is coming into focus it is fading out of view. That is, is it not, the essence of Hollywood.

  18. John Hurt says:

    Oh, and was it Firestone, Professor? Please enlighten me. You are good at that.

  19. Hugo says:

    Don’t call me “Professor”. They call me Mr. Pibb! Yes, it was the company, but not Harvey I. In league with Standard Oil, a company that has spawned almost as much poetry—if we count doggerel and grafitti—as the might Rose herself has done. The story is really fascinating (so much so that I think they know it better in Michigan than in California) and it had not a little to do with the Chandlers of the Times and time, so therefore it’s known thereabouts only in its variously sanitized versions.

    At least those folks were trying to build something positive—something not-coincidently like W. Disney’s “Autopia”. Nowadaze it’s just about what shouldn’t happen: no lines of communication between the hoi polloi and the hoity-toity. That’s happened in So. Cal., and it’s happened here in Atlanta, a notorious hub-and-rim place of too few spokes.

    Anyway, you folks and Firestone. Well, you know the story. The rats and the chincilla farm. The various upstream and downstream folks figured out that their revenue streams were all dependent on the Spring of Life, the internal combustion engine. Why it took them until the late ’30s to figure this out, who knows? But anyway, the splendid trolley system of the Southland was in the way of Progre$$, so when that region went whole-hog into airframe production, etc., with the feds already starting to manage a demand economy in anticipation of our entry into The War, well. If you have density, how’re you gonna sell land, and cars, and gasoline, and tire rubber, and branch banking, and home loans and—whoa!—franchises?

    So just wait a generation until once again you find the oh-so-subtly-unpredictable need to drive Wilshire through Bunker Hill, to connect Downtown to the West side and—presto!—this time you get to pay through the nose to buy back the same old right-of-way, only this time you get to pay and pay and pay, until even the folks in Detroit and those of us in Atlanta have to pay for the little deal that went down in 1940.

  20. Tennessee William Shakespeare says:

    My Dear Mr. Pibb

    My deepest apologies for the Professor thing. I had no idea. I guess I was into a Gilligan type deal earlier. By the way, Gilligan’s Island is my favorite adaptation of The Tempest. That is a truly American modernization of Shakespeare. Which reminds me of my name change. I hope there is no copyright infringement on Tennessee Ernie Ford.

    Thank you for that story. That is truly fascinating. A tale told by blurred visionaries, full of sound and fury, signifying nothing but gridlock. The Tragedy of Rodney King Lear. I’m going to look further into that. Sounds like there might be a movie in there. Mr. Taplin?!?

  21. Hugo says:

    No, not a movie, puhlese, Tennessee! It’d play flatter’n’ Maestro Coppola’s “Tucker” thingie. Process stories: nonfiction; as fiction they work only as disguised biography. But not this one.

    Thing about systemsthink, it applies equally to gridlock and to arterial sclerosis. You’re affluent or yer effluent. It’s all streams, and yer place in them…

    “The breakfast garbage that you throw into the Bay,

    They drink at lunch in San Jose.”

    T. Lehrer

    Au fil du fleuve~~~

  22. Jon Taplin says:

    Hugo- Someone already made the movie-“Who Killed Roger Rabbit”. It wasn’t so flat, but rather avoided the real issue and morphed it into cartoonland metaphors.

    Whether played as fiction or non-fiction, the story is as good a parable for post World War I capitalism as I’ve come across.

  23. John Hurt says:

    Dear Mr. Leer

    I stand corrected. Or in actuality, I lie corrected. I will now go back to poisoning pigeons in the park. Just for a lark. Ain’t that a quark?

    Oh, to hell with it.


  24. John Hurt says:

    I have just read Mr Taplin’s reply, and enthusiastically endorse it. He’s not Jon Taplin for no reason at all.

  25. Hugo says:

    No kiddin bout that Jon Taplin there, Tennessee Bill.

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