the Fed

[scheier <scheier@xxxxxxxxx>]

I'm very lucky to be able to say I wasn't short the emini
nasdaq when this Fed announcement came out, but that was
by pure luck, as I was short twice on the way down for
moderate profits in what I thought was a normal day.  In my
opinion, there is no excuse for the Fed to treat the market
and its participants in different manner for potentially bullish
news as it does for bearish.  The right way for the Fed to behave
for such dramatic reversals of policy is giving small hints.  This
intentional surprise treats such participants like market makers,
floor speculators, and specialists--who by nature must take short
positions as part of their daily role-- as if they were second class.

I have previously held Mr. Greenspan in fairly high regard, but
must reconsider my opinion.   This is an example of the Fed
playing god.  That's not its role.   It's role is to tweak.  It's manner
should be humble.   In this action, it places itself above the private
sector as if the corporate world of equity ownership were subservient
to the Fed's control.   This is the ultimate disrespect.   Some have
said they thought Mr. Greenspan should have gone some months ago
because of his lagging actions to leading indicators of a lagging
economy.   I say he was doing exactly what he should have been
doing at that time.   Now I find myself on the opposite side of
their opinions again.  As they love him for his actions today, I
despise him for the thoughtless and even arrogant way in which
he has superseded his role.

Scheier