09-25-07 Fundamental Market Sentiment

Last week when the US FED raised rates I was extremely puzzled. 50 basis point drop!!! Are they for real? Here is what I think. The US government is thinking ultra short term. The lowering of rates will enable lenders and people who suffer from this credit crunch to have "short term" survival. At the same time the US continues with its weak dollar policy and why? To support the "housing crisis and stock market?" My feelings as a trader are to cut your losses, squeeze out all the week legs from the credit crisis and stock market and rebuild with a solid foundation.