Monday, October 1, 2007

The sky is not falling

Dukh bhare din beetey re bhaiyya. The downslide stopped. Fed reduced interest rates by a whopping 0.5%. Helicopter Bernanke (he once said if there is a cash shortage in the market he will get in a helicopter and throw cash on the streets) finally blinked. In a recent interesting article in the New York Times one analyst talks about how the Fed has to keep pleasing wallstreet just like a mom pacifies its baby. Only the baby here is the rich wallstreet banker who gets scared as soon as he hears the baby next door sneeze. The problem is that the baby is strategically placed and hence needs to be mollified constantly or else it starts pulling out its investments from the market. Then all babies follow causing a domino effect. The markets are jumping higher now. Doesn't matter if reducing interest rates may (note *may*) lead to inflation (or may not) so in short its possible that you will have a lot of money but your money won't be worth much because everybody around you has a lot more too. Who cares about that for now. Enjoy the ride. See your investments grow. Let the good times roll. Kya pataa, kal ho naa ho.

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