Unusual Times
5th March 2008
Call for unusual actions. I don’t know the solution to what ails this market. I am not that smart. But I do believe its time for the Fed to stop saying one thing and then doing the opposite. They have always said that their policy was a strong dollar while the dollar is down close to 40% this decade. Oil was up 5 dollars today. Gold is approaching 1000. Ag’s are on a tear. Credit markets are in chaos. The yield curve was steeper(again) today. The Fed needs to think “outside the box” as the chairman likes to say when he proposed the ludicrous notion for banks to reduce the principal on mortgages. Its time for the fed to physically support the dollar. - BA