For Christ Sakes, Do Something Bernake!

Ben Bernake should have a new nickname. "Do Nothing" Bernake. Or perhaps, "Hide and Say Nothing" Bernake. While his contemporaries in the FED are speaking out louder than a British Fog Horn, namely Poole and Lacker, whose pontifications can lead to sharp drops in the wall street these days, the guy who is supposed to be in charge is notoriously out of the spot light.

It is all right that he hides, but what bothers me is that Bernake has lost all forms of credibility and continues to lose it as days go by. From his famous speech back in March that subprime is "largely contained" to his recent admission that things are drastically worse than feared, his tenacious focus on core inflation (or the lack of) continues to put this economy and the world's at an impasse and the danger of global recession, or worse, depression.

I used to side with Lacker and Poole back in March, when I felt that the FED needed to raise interest rates. But now, that window of opportunity has passed and would serve a sinister road map of global economic ruin. The "window" of opportunity to do something about inflation and put an end to unmitigated housing buildup despite evidence of growing inventory by home builders and "reset" the sins caused by greed in the housing market has passed and the only thing left now is gasping for a rate cut.

Fed's cut of the discount rate by 50 basis point is a testament that the FED is indeed, and rightfully, worried about credit liquidity crisis. Yet, the real focus that can do something to help this disasterous credit crisis, the fed funds rate, has been left alone. So, Bernake and Co wants to fight inflation yet, they have infused unprescedented 31 billion dollars, the most since 9/11, into the economy. This is not only inflationary but dangerous as the FED is printing money at an alarming rate. I do not see the logic, other than pure arrogance and stubborness of Bernake, by not wanting to lose face and cut the fed funds rate by 50 basis points. It is too late to save face for Bernake now. What he has done the past 3 weeks has set in motion of greater calamities to come.

What will Bernake say on Friday that would matter? He would probably say nothing. But you can bet your bottom dollars and your bottom line that he will "omit" quite conveniently, the word "inflation" from his speech. The inflation fight is lost. I do not see any reason to destroy the global economy and he is not at all a contemporary of Greenspan or his equal.

The question is, if he wants to kill the world economy, then please raise the interest rate 50 basis points and get done with it. We may forgive you in about 5 years. Otherwise, if he has any ounce of common sense left, though I figure he left that back at Princeton with his Nuvou Riche waste of space academics, he will admit that he was wrong, apologize, and take action.

Do something Bernake! It is one of very rare times that I actually agree with Jim Cramer! Way to Go!