WE ARE RUN BY CORRUPT INCOMPETENT MONKEYS
Congress should immediately call Bernanke in for questioning, and open an investigation into the Fed's behavior since 2001
This latest glaring market-induced mistake should be corrected immediately. The technical sell-off on Monday that had day trader Bernanke panicking on Tuesday is now being reversed, and so should this rate cut.
What is most shameful and scandalous for the Fed is that Societe Generale had informed the Bank of France about what was going on on Monday, YET THE FED AND THE BANK OF FRANCE DID NOT COMMUNICATE, so the Fed went ahead and put in their market stop-loss order on Tuesday morning before the market opened. If they had known the truth, there's NOW WAY IN HELL THEY WOULD HAVE MADE THIS GLARING MISTAKE. NO WAY.
Ben Bernanke should resign, the Fed should be investigated, and this 3/4 point mistake should be reverse post-haste. And if you believe Bernanke made a historic mistake, you might want to think about getting long.
Fed didn't know about SocGen trades on Monday - Revelations spur market to reassess central bank's intentions in a new light
The Federal Reserve was not aware that Societe Generale was unwinding trades in Europe on Monday that had been amassed by a rogue trader at the French bank, a Fed source said Thursday.
Some observers, citing Societe Generale's sensational announcement, say the Fed's dramatic policy remedy may have been too much too fast.
Longer-term, if the Fed was spooked into making an emergency rate cut this week on the back of what was just technical selling, it could further undermine market confidence in Bernanke.