Tuesday, December 12, 2006

10-1 Snoozer at the Fed

  • The market swooned back and forthlike it was taking shots of Jägermeister throughout the day.  Fear of the Fed hawkishness turned to relief when the Fed did nothing and the market recovered from earlier panic selling.  For those of you who look at MACD divergences, check out the Nasdaq.  Also notice that volume on down days exceeds the volume on up days.  Just saying. 
  • Alcohol in moderation may extend life.  (And a few shots of Jägermeister may help create life).
  • The Fed left rates alone on a vote of 10-1.   Yes, that one vote was from Jeffrey Lacker, who seems to be drinking from a different bottle.  Lacker continues to see inflation gremlins where none exist.  But the good news is that this was Lacker's last vote, as he is no longer a voting member.  Here is the Fed press release:

Economic growth has slowed over the course of the year, partly reflecting a substantial cooling of the housing market. Although recent indicators have been mixed, the economy seems likely to expand at a moderate pace on balance over coming quarters.

Readings on core inflation have been elevated, and the high level of resource utilization has the potential to sustain inflation pressures. However, inflation pressures seem likely to moderate over time, reflecting reduced impetus from energy prices, contained inflation expectations, and the cumulative effects of monetary policy actions and other factors restraining aggregate demand.

Nonetheless, the Committee judges that some inflation risks remain. The extent and timing of any additional firming that may be needed to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information.

  • Adam on volatility.
  • Latest link added to the sidebar is I am Facing Foreclosure by Casey Serin, a 24 yr old real estate investor from Sacramento CA. After going to a few seminars I bought 8 houses in 8 months in 4 states with no money down looking to fix 'n flip. I made some mistakes and fell flat on my face with millions in debt and facing foreclosure. Trying to avoid foreclosure, sell quickly, repay everyone, and blog my lessons to help others in trouble

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