Fed Stuck in a Corner, Asleep!

By cutting the Fed funds rate by only 0.25 percent our Fed as good as gave up.
Now we’re between a rock and a hard place.
Even a glance at the financial news media makes it clear that the financial strains are indeed increasing and that the credit crunch is far from over.
Meanwhile real estate prices continue to fall at increasing rates
In addition, real personal consumption is down from a positive 5 percent annualized growth rate in August to a negative 0.4 percent, in October.
The real disposable personal income annualized growth rate of 6.1 percent, recorded in August, fell to a negative 1.7 percent by October.
And yet our Fed felt able to make the unbelievably sanguine statement that there is evidence that our economic growth is “slowing.â€