Thursday, September 11, 2008

more wishful thinking?

three months ago the futures market was pricing in Fed Funds Rate increases as far as the eye could see. perhaps I understated things when at the time I commented that 'I view the likelihood of that coming about with some skepticism.'

well now, the Market, in Its Infinite Wisdom, has begun to put an ever so slight bet on a rate decrease. one as soon as next week, no less.

well, stocks are down, Dollar's been put up. maybe not a bad opportunity for the Company Store to show its Deflation Fighting Credentials. I'm sure Ben the Vigilant would love to oblige with a price cut. but next week? eh, I wouldn't put it past them, but unless the Markt crashes the next few days we should probably more expect some new DVL (deflation vigilant language) in the statement. one step at a time.

though it seems as though the bond speculators are hopped up on something: