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Re: Two-timer post# 11960

Thursday, 11/01/2007 3:06:18 PM

Thursday, November 01, 2007 3:06:18 PM

Post# of 31925
Two - You are exactly right. The question is whether the Fed will fight inflation OR a depression. They will fight the one they fear the most. The other battle will of course be lost because they cannot fight both.
I think they will fight off a depression by lowering rates. The dollar is headed for .40 against the Euro. Oil is headed for well over $100. The dollar plummeted with both rate cuts so far.
The Fed is between a rock and a hard place. This was not a problem they faced at the top in 2000 or the bottom in 2002. At those times the choice was an easy one.
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