Scopia Capital
Who Needs Vigilance?
Here's a link to listen to an Audio Version of the report:
The excuse given for Wednesday's tank job following the announcement that the Fed was cutting rates for the seventh time since September was that Mr. Bernanke and Co. weren’t showing enough vigilance toward the evils of inflation. And while the inflation hawks may have a point in the big picture, it would appear to more sensible folks that the Fed might just have its hands full at the moment now trying to (1) keep the banking system from collapsing and (2) keeping the economy from heading straight into the toilet.
While we had very little proof, we felt that a more likely reason for the 150 point swing was that boys and their computers do like to have their fun on occasion. So, with the bond market in a tizzy, the sell programs seemed to ...
