With These Cuts, We Can Get Back to Business
By Jim Cramer
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So what, gold? So what, dollar? Get this economy moving with the little inflation we have, ex oil and ex corn, and we are in great shape. I know the hawks will try to chop off this gain. I know I just missed 200 points in the Dow. But I have to tell you that things are now better. We need these rate cuts. We can’t sell a lot of homes — despite the fire sales — and we need the fixed-income world to get back to earth. We need people to lend. We need people to feel better. And now they will. This is the exact opposite of what the bears want. It is crushing them. Too bad.
No Jim, it isn’t crushing us. It is saddening to us. Unfortunately these cuts don’t actually fix anything, all it does is introduce more (virtually) free money into a system whose problem is that it has already lent out too much free money.
The bubble contracted a bit, but it’s still a bubble, and all that has happened is the Fed has traded pain for the banks into pain for the average hardworking American who is going to have to deal with massive inflation in the weeks/months/years to come as foreigners with trillions of dollars realize that it just doesn’t pay to keep buying (or retaining) a currency whose sole backer is so willing to water it down.
Good work Jim, keep the charade going. That’s your job.