Fed: Sorry, Our Bad.

FOMC minutes were released at 2:00pm this afternoon.

Upon reading the release, Candide Dr. Pangloss suffered a fatal heart attack.

The reset of the cheerleading squad of pollyannas simply lost their arguments — along with their lunch — that growth is fine, inflation modest, the credit crisis contained.

The FOMC lowered their growth forecast, raised their inflation and unemployment forecast. The only omission in the announcement was their new policy, for the first time ever, of buying Index Puts to pay for all of the new Credit Lending Facilities.

Markets, which were positive, rolled over and fell 250 points.

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Source:
Minutes of the Federal Open Market Committee April 29-30, 2008
Federal Reserve, May 21, 2008
http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20080430.pdf

Fed Signals Rate Cuts Are Done
BRIAN BLACKSTONE
WSJ, May 21, 2008 2:11 p.m.
http://online.wsj.com/article/SB121138451480710941.html

Most Fed Officials Saw April Rate Cut as `Close Call’
Craig Torres
Bloomberg, May 21  2008
http://www.bloomberg.com/apps/news?pid=20601087&sid=aYj1lICzRiEs&

Category: Federal Reserve

Call — or Raise?

Category: Currency, Federal Reserve

Crude Oil = $132; Peak Oil ?

Category: Commodities, Energy

Odd Data Point: Tech Passes Finance in SPX

Category: Earnings, Finance, Index/ETFs, Markets, Valuation

Read It Here First: Boating and the Economy

Category: Consumer Spending, Credit, Economy

Seasonal Adjustments and Inflation

Category: Data Analysis, Energy, Inflation

Malcolm Gladwell: Reinventing Invention

Malcolm Gladwell on the challenge of hiring in the modern world. From “Stories from the Near Future,” the 2008 New Yorker Conference.   

Interesting discussion, classic Gladwell . . .

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click for video:
Malcolm_gladwell_2


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Source:
REINVENTING INVENTION   
Malcolm Gladwell
New Yorker, May 12, 2008
http://www.newyorker.com/online/video/conference/2008/gladwell

Category: Data Analysis, Psychology, Video

Corporate Bailouts Through History

Category: Corporate Management, Credit, Derivatives, Federal Reserve, Hedge Funds

Mapping The Blogosphere

Category: Digital Media, Web/Tech, Weblogs

Price Increases, or Margin Squeezes?

Category: Consumer Spending, Economy, Inflation