What Do You Think About the Fed's Intervention?

Since fall of last year, we have seen the Federal Reserve interact in the markets with the timid ness of a sick mouse! Ben Bernanke keeps giving the markets one crumb at a time instead of doing the inevitable whole cookie. Wall street continues to want more and since the Fed keeps doing little crumb cuts at a time - Wall Street is never satisfied! Who would be? Why settle for little rate cuts when you know that Ben will come back again with more? Who would want to invest in a market like this? It doesn't take a genius to understand why Americans are suffering at the pump and the grocery store. Commodities are going up and up because no one wants to invest in the shaky USD or the US stock market. Investors don't care about who's losing money just as long as they are making money somewhere.

The Fed is hurting the rest of us through lower interest on our savings, higher prices on gas, and through the inevitable inflation and devaluation they are causing. Let the free market handle it and let those who made high risk mistakes take responsibility. Don't make the rest of us pay though "quite" indirect causes hoping we don't notice.

The concern now is the dollar. The ripple effects of a cratering currency are often subtle...like, for instance, the way in which the dollar's decline impacts the value of our markets. A musing on that front is here: http://www.xanga.com/Beloved_Spear

It's bad. There is no concern over the value of the dollar. The more money they print, the more worthless it becomes.