The culprit this time is the failure of both the Carlyle Group and Thorburg Mortgage failing to meet margin calls. And to add fuel to the fire, the February payroll showed a deep malaise, with 63,000 jobs lost and a decline in the jobless rate of 4.8 percent. Near panic, the Dow crashing, bad news piling up and everyone is literally begging for a rate cut. Which is likely next week. At least 50 basis points.
Submitted: Mar 7, 2008
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View Article: http://www.money-rx.com/blog/2008/03/time-for-rate-cuts-again.html
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Comments Received:
Agreed. Another rate cut, or two, or three are coming. But like Japan in the 90s don't think it's going to do much good. The real culprit is overleverage and too much debt going bad. With forclosure rates at record levels and rising, it's bringing down the whole house of cards that Wall Street built. Blood is in the streets and it will continue to flow. The Fed's actions are like spitting in the wind.
Posted: Mar 7, 2008