TOO LONG AT THE FAIR

Who says Al's our pal? (Neil Cavuto, June 29, 2003, Town Hall)

So Alan Greenspan and his buddies on the Federal Reserve Board lowered interest rates again this week. Another quarter-point bone to the masses, for which we're to be eternally grateful. Pardon me, but I don't think so.

First off, it should have been a half-point cut. That would have sent an unequivocal message to the markets and the rest of us that this Fed gets it. Things are still dicey, so there's no time for fooling around.

By moving as conservatively as they did, Al and his pals sent quite the opposite message: that things are fine, just you wait. Well, for better than three years' worth of rate cuts, we've been waiting, and the Fed has been dithering. This latest cut only continued the trend, and was one of the big reasons why the Dow fell 98 points the day the Fed moved. Too little, too late.

What amazes me is despite the disappointment, few criticize Al himself. He's held in remarkably high regard almost everywhere. Wall Street loves him. Congressmen trip over themselves praising him. And even the Bush administration is afraid to say boo to him. Why? What has this guy done to warrant such unanimous love?

I'll tell you, in one word: nothing.

Mr. Greenspan hasn't understood the economy since Paul Volcker and Ronald Reagan destroyed inflation--time to enjoy a well deserved retirement. Posted by Orrin Judd at June 29, 2003 6:16 AM