Friday, March 10, 2006

Myth busting # 3 (contd) Fed funds Rate

How did the moron try to kill a bird?

He threw it off a mountain cliff !

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See my earlier post on Fed funds Rate going way, way up into the clouds.

And what were the geniassssses saying then? 4.5, perhaps 4.75 tops and then we go down, down, down!

What are they saying now?

"Over the course of the current tightening cycle, many market participants have been repeatedly surprised by the magnitude and duration of the Federal Reserve’s action. Several times the market has gotten it into its collective head the Fed was done — including in the immediate aftermath of Hurricane Katrina, or the “one-and-done in 2006” sentiment — only to reverse itself later. Analysts are now forecasting additional hikes to the 5.00-5.50 percent range before this cycle is over."

Why can't a moron dial 911?

They can't find the 11 on the phone!






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