Here we go again

Fed will cut by 1/2 a point. Wall St, led by Larry Kudlow and CNBC has a collective orgasm. Wall St also forgets about the trillions, yes trillions, of junk debt out there. The fed will save us, the fed will save us is the new rallying cry. Before you do something silly like believe the nonsense here are some charts to consider:

1st off we have the NASDAQ Jan 2001 to Dec 2002. During this time the Fed cut rates from 6.5% to 1.25%. This was the result in the stock markets. Every one of those spikes up was due to a fed cut. And it didn't last.

More recently here is the chart for the past 3 months.

The fed cut on Sept 18th and Oct. 31st. And where is the index now? Below Sept 18th and below Oct 31st.

The fed can cut to 0% and it won't change the fundamental problems with this economy which are we spend more than we make. This goes for individuals and government. Granted the cheaper that borrowed money is the better, but you do have to pay it back at some point.

As for this productivity report that says we as a nation are 6.3% more productive and hence inflation is not a concern. If you truly believe that in one quarter you have magically increased your output by 6.3% I have a bridge to sell you. If you also think inflation is 2% as the govt claims I have some Kansas oceanfront property to discuss with you.

The MSM is being given a run for its money in terms of outright lies.