All I can say is, Harry Truman Lives...
6/29/2006 5:21:19 PM
Stocks rallied strongly on Thursday (June 29).
*****
All I can say is, Harry Truman Lives.
America's 33rd president was not a patient fellow, which I say is reason enough to like him. The fact that he rarely concealed his impatience makes him downright admirable.
Take Truman's famous quip, "I want a one-armed economist so that the guy could never make a statement and then say 'on the other hand'" Wish I'd said that -- I like it even better than Truman's advice to exit the kitchen if you don't like the heat.
Maybe you've heard the one-armed economist quote. It may even have crossed your mind this afternoon if you followed the "Fed Boosts Interest Rates" story. To actually read the FOMC statement was like hearing Harry Truman shout through a bullhorn:
"Readings on core inflation have been elevated in recent months."
"[H]igh levels of resource utilization have the potential to sustain inflation pressures."
"[T]he Committee judges that some inflation risks remain."
On the other hand:
"Recent indicators suggest that economic growth is moderating from its quite strong pace."
"nflation expectations remain contained."
"[M]oderation in the growth of aggregate demand should help to limit inflation pressures over time."
Gosh, you'd think that the 10 FOMC governors who unanimously endorsed the statement were all economists or something umm, wait, they all ARE economists. Look the thing up if you think I'm being unfair. All six quotes come from the three relatively brief paragraphs (168 words) that comprise the Fed's policy statement.
Naturally, the punch line to the Fed's statement is that, after the central bank raised the fed funds rate today, the stock market launched a big rally. This is a defiant mockery of everything the media has said about stocks for nearly three months -- namely that the Fed has been raising rates because of "inflation fears," and in turn "inflation fears" have made the stock market decline.
The news stories tried to make it sound like investors were "reacting" to "dovish overtones" in the Fed's statement. an interpretation that you're welcome to laugh out loud about if you care to.
Our take on today's stock market was in the analysis we provided before the Fed's statement. Wednesday's Short Term Update (June 28) included a chart that clearly said, "Stocks Will Likely Spurt Upward" There was no "on the other hand."
6/29/2006 5:21:19 PM
Stocks rallied strongly on Thursday (June 29).
*****
All I can say is, Harry Truman Lives.
America's 33rd president was not a patient fellow, which I say is reason enough to like him. The fact that he rarely concealed his impatience makes him downright admirable.
Take Truman's famous quip, "I want a one-armed economist so that the guy could never make a statement and then say 'on the other hand'" Wish I'd said that -- I like it even better than Truman's advice to exit the kitchen if you don't like the heat.
Maybe you've heard the one-armed economist quote. It may even have crossed your mind this afternoon if you followed the "Fed Boosts Interest Rates" story. To actually read the FOMC statement was like hearing Harry Truman shout through a bullhorn:
"Readings on core inflation have been elevated in recent months."
"[H]igh levels of resource utilization have the potential to sustain inflation pressures."
"[T]he Committee judges that some inflation risks remain."
On the other hand:
"Recent indicators suggest that economic growth is moderating from its quite strong pace."
"nflation expectations remain contained."
"[M]oderation in the growth of aggregate demand should help to limit inflation pressures over time."
Gosh, you'd think that the 10 FOMC governors who unanimously endorsed the statement were all economists or something umm, wait, they all ARE economists. Look the thing up if you think I'm being unfair. All six quotes come from the three relatively brief paragraphs (168 words) that comprise the Fed's policy statement.
Naturally, the punch line to the Fed's statement is that, after the central bank raised the fed funds rate today, the stock market launched a big rally. This is a defiant mockery of everything the media has said about stocks for nearly three months -- namely that the Fed has been raising rates because of "inflation fears," and in turn "inflation fears" have made the stock market decline.
The news stories tried to make it sound like investors were "reacting" to "dovish overtones" in the Fed's statement. an interpretation that you're welcome to laugh out loud about if you care to.
Our take on today's stock market was in the analysis we provided before the Fed's statement. Wednesday's Short Term Update (June 28) included a chart that clearly said, "Stocks Will Likely Spurt Upward" There was no "on the other hand."