BIZARRO WORLD….As usual, I don’t get it. Following a day in which the government was forced to broker the fire sale of a huge investment bank on the brink of cratering, core producer prices jumped unexpectedly and the Fed went ahead and slashed interest rates anyway. Apparently their outlook on the economy is so dismal that even the prospect of igniting an inflationary spiral didn’t stop them from cutting the fed funds rate by 75 basis points.
And Wall Street’s reaction? The Dow went up 420 points. Don’t these guys understand that a recession is bad for business?