I would have commented on the Fed’s drop in the interest rates, but the stupidity of a 50 basis points drop both ways (any drop, really, but 25 would at least have been tolerable) was so total that it left me speechless. The subsequent course of the currency bears this out (although sterling is having its problems with the blowback from the subprime fiasco.)
The pseudosophisticates are at it again. This is nothing more than an upper middle class bailout.
The best analysis of this I have found is here, made right after the deed was done.