Yesterday, I said that the Fed had become Wall Street’s "Bitch".
It was toward the end of the post, and I assumed it would hardly get
noticied. However, I guess it was pithy enough to have gotten picked
up by a few media outlets.
Today, I wanted to steer the discussion the other way: Ben
seems like a smart guy who does not want to be Wall Street’s play
thing. He doesn’t strike me as irresponsible, and he sure doesn’t want
to go by the nickname "Helicopter Ben."
The Journal noted "The move came amid a sizable drop in home sales, construction and prices that could send mortgage defaults higher and damp consumer spending . . . Fed officials had been leaning toward a rate cut in recent weeks, but the case for the larger move may have been sealed by a report two weeks ago revealing that employment declined in August for the first time in four years. That showed the economy had slowed markedly even before the full force of the market turmoil had been felt."
So, did they finally realize that Housing is a giant mess? What was it
the NFP number, the Retail sales data, a combination of all three?
What say ye?
Graphic courtesy of Jordan Roy-Byrne . . .