11/11/07

The Fed lacks leadership

Nov. 9 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke failed to convince investors that there's no need for further interest-rate cuts soon.

Bernanke told lawmakers in Washington yesterday that officials already expect the economy to ``slow noticeably'' this quarter, and warned of ``upside risks'' to inflation.

I agree. Mr. Bernanke failed to show leadership. He should have told Congress the Fed was in control and everything will be done to keep the unwinding of risk from getting out of control.

He hedged his statements giving the impression of being insecure. And the market sagged. Including the dollar.

Hopefully he learned the lesson.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

1 comment:

Unknown said...

At your urging, I began to read hussmanfunds.com where I see John Hussman is now expecting a recession. In your opionion, is this the reason for the dramatic fall of stock prices recently and do you agree that we are in or will have a recession?