(Left: DJIA vs USD/EU)
–Fed cuts key loan rate by 50 basis points.
–Stock market surges as Wall Street realizes that the Fed is committed to bailing out all the idiots who jumped on the housing bandwagon and didn’t have enough money to buy a ticket.
–The rest of the world, who is holding our dollars, realizes that the Fed is committed to watering down their investments until they are worthless.
While I am quite ticked off that the Fed proved it’s just a whipping boy for Wall Street fat cats, this really doesn’t delay the pain that is coming fast. It’ll just make it that much more painful when it does come.
The message today was loud and clear: Don’t bother being a good saver. Don’t bother being fiscally responsible. Don’t bother with that whole ‘work hard’ to earn something attitude. Instead, go for the “free” money. Get in over your head and let the government (taxpayers) bail you out. Not because they want to, but because they have no choice.
What a gutless, pathetic excuse for a government we have.