September 18, 2007


Wow.  Wow.  Fed cuts 50 basis points.

The Fed did the only thing it could do, given the circumstances.  Now people can maybe keep their homes, maybe we don't slide into recession.

But oil goes to $93 and gold to $800, and people think twice about buying corn.  Meanwhile GS goes to 220 and the Dow to 15000.  And the split between rich and poor becomes visibly wider.

Oh, you want a psychiatry angle.  Ok.  Zero percent chance of universal healthcare in the next 5 years.


(disclosure: long gold, GS, GOOG; short Iran and Angelina Jolie.)