Tuesday, August 7, 2007

Crude cools while Cramer burns

Jim Cramer on CNBC Friday, August 3, 2007, was steaming because he thought that Fed chairman Ben Bernanke didn't realize how badly the market needed a rate cut.

Cramer is clueless. Bernanke has more to worry about than stocks, bonds, and private equity buyouts. An article on cnbc.com August 7 suggested that the drop in the price of crude oil means that the problems in the credit markets are spilling over into commodities. If this is true, then a cut in the short-term rates would do little. Bernanke must also concern himself with supporting the dollar.

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