Let them eat fed

[timework@xxxxxxxxx (Tom Walker)]

Snap quiz:

1. What is the meaning of this 1/2 point fed rate cut, 4 weeks ahead of
schedule and the euphoric stock market response?

2. Why is the fed "always right"?

3. Is there a danger that over reaction in financial markets could undermine
the impact of the rate cut on the real economy?

4. Do interest rate cuts and/or increases always have direct linear effects
on economic activity or might they, under some circumstances lead to
perverse consequences?

5. Why did the US dollar strengthen in response to the rate cut?

6. What does "hair of the dog that bit you" mean?
Tom Walker
Sandwichman and Deconsultant
Bowen Island, BC