Friday, October 24, 2008

Amazing that there is not a major fiscal response to this

It can all be stopped with a massive spending package. But myths about deficits and "gold-standard-thinking" keep us from saving ourselves. What a shame.

Fed rate cut expected, however, that won't do anything at this point. This is now classic, "pushing on a string." Would be much more effective for the Fed to buy stocks or better yet, stock index futures. Put a floor under this and stop the panic.

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