Interest Rate Cuts Announced By The Fed

by BWK ~ January 22, 2008

“I’m just a broken down old disc jockey,” said Jim Quinn this morning on his
Pittsburgh-based radio talk show. “I’ve been spinning records and running
my mouth on the radio for 45 years, so what the hell do I know?” he asked.
“But even I can tell you that cutting interest rates is the exact last thing
that the U.S. economy needs right now.”

Quinn was reporting the news that Fed Chariman Ben Bernanke had just
announced a cut in interest rates of 75 basis points. “Most of the problems
of the U.S. economy have been caused by too much easy credit,” said
disc-jockey Quinn. “And the solution to the problem is not to pump out even
more easy credit. The Fed ought to just let whatever is going to happen,
happen. Let things run their course and clean the rot out of the whole
system. If people are going to get foreclosed and lose their houses, then
that kind of stuff happens. It is what happens when you take on too much
debt, and bet the wrong way in life. But no, the Fed and the Washington
politicians are just going to drag this whole thing out. Instead of a sharp
correction over a period of months, they will drag this thing out so that it
lasts for years.”

Not bad analysis for a broken down old disc jockey.

-BWK