Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

max....

I agree that a cut will not help the economy - indeed I think there is nothing AG can do now that would help. It is too late and a longer lasting, deeper recession is unavoidable, in my opinion.

I had advocated several months ago the solution that Zeev suggested tonight - a rate hike instead of a cut. Back then, when the "recovery" appeared underway, a short series of rate hikes would have reloaded the Fed's ammunition supply and would have given them more room to maneuver now, and probably (according to Bill Gross, anyway) would have brought longer term rates down, rather than up. I think the window of opportunity for that move has now passed, though, but it might be interesting to see what it would do.

Take care.

mlsoft