How Worried Is the Fed?

On Fridays I like to watch the Nightly Business Report. It is a business program on PBS that is on daily at 6:30 PM ET. One of the main reporters is Paul Kangas. He has been reporting for NBR since I was a young fellow and really knows the markets. I remember when I was growing up he used to say, "And on Wall Street, the bulls and the bears went at it again." On Fridays Kangas has a segment with a guest that is called the market monitor. Last weeks market monitor was Jim Stack. Stack is another 'solid fellow' as he has all sorts of stats at his fingertips. The one quote that Stack said that stuck with me after the interview went something like this, "The last time the Fed has cut the discount rate twice in a ten day period was in 1914... This goes to show how worried the Fed is. "

Thanks Paul for that interview and Jim for that stat. Wow the last time the Fed reacted by cutting the discount rate twice in a 10 day period was almost a hundred years ago!