Sautéd chapeau even in this fabulous culinary nation is not tasty. 50 bps to the discount rate (not Fed funds) and stick Jim Cramer in the FOMC forthwith, if you please.

Now, as markets climax in relief there is a tiny question that arises: who was imploding that badly to merit this?

Then there’s the medium-sized question (but not by much from the biggie below if you're currently in the deleverage spit-roast position): is it enough to reduce the half-lives of the financially toxic such that they become operationally treatable?

And the biggie: temporary or not, is it in the best interests of the wider economy?

Ack, ack, ack, ack, ack.

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4 comments

  1. Charles Butler // 8/17/2007 04:26:00 PM

    The preannouncement celebration was pretty impressive, n'est-ce pas? Two birds, one stone.

  2. Ken Houghton // 8/17/2007 04:27:00 PM

    It's not the Discount Rate cut, it's the Revolving Credit 30-day Rollover in Perpetuity that accompanied it that tells the story.

    The logical candidates: KKR, Countrywide, Bear, Fifth Third, Citi, etc. are the sideshow.

  3. RJH Adams // 8/17/2007 05:18:00 PM
    This comment has been removed by the author.
  4. Will Rahal // 8/18/2007 04:55:00 PM

    I have taken a look at YTD Retail Sales and CPI.

    CPI is increasing at an annual rate of 4.8%.
    In an credit crunch panicky environment
    Inflation is still tying Mr. Bernanke’s hands.

    Real Retail Sales is at .9% indicating a weak economy.
    The weakness in the US will have repercussions in the
    Stronger overseas economy.

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