Brad's Books and Organizations

Books

Books

Organizations

Organizations

Hi, I’m Brad Feld, a managing director at the Foundry Group who lives in Boulder, Colorado. I invest in software and Internet companies around the US, run marathons and read a lot.

« swipe left for tags/categories

swipe right to go back »

Dear Chairman Bernanke – We Need More Crack

Comments (5)

This was so predictable.  As I mentioned in my post from a few weeks ago titled Can I Have Some More Crack Please?  I am not a macroeconomics guy.  I don’t watch the market nor do I watch TV news.  However, I do get WSJ.COM alerts (mostly for my own amusement to see what they think is worth emailing out alerts about.)

Here was today’s:

Feb. 5, 2008

The Dow Jones Industrial Average plunged by 370 points, or 2.9%, as investors’ anxiety about a possible recession flared following a bleak reading on the U.S. services sector and cautionary language about the economic outlook from a Federal Reserve official. It was the worst performance of the year so far for the blue-chip average in both point and percentage terms. Other major benchmarks also sold off dramatically. The S&P 500 Index plummeted by 3.2% and the Nasdaq Composite Index dropped 3.1%.

I guess the crack high has worn off and it’s time for another hit.  Rate cute anyone?

  • Michael Stich

    Brad, there's a GREAT recap from Krugman on how we got here, take the time to watch the whole thing:

    http://ocrampal.com/node/49

    Jim Cramer agrees with you: lower rates, and by the way can the rebates:

    http://nymag.com/news/businessfinance/bottomline/

  • Michael Stich

    Brad, there's a GREAT recap from Krugman on how we got here, take the time to watch the whole thing:

    http://ocrampal.com/node/49

    Jim Cramer agrees with you: lower rates, and by the way can the rebates:

    http://nymag.com/news/businessfinance/bottomline/

  • Michael Stich

    Brad, there's a GREAT recap from Krugman on how we got here, take the time to watch the whole thing:

    http://ocrampal.com/node/49

    Jim Cramer agrees with you: lower rates, and by the way can the rebates:

    http://nymag.com/news/businessfinance/bottomline/

  • Michael Stich

    Brad, there's a GREAT recap from Krugman on how we got here, take the time to watch the whole thing:

    http://ocrampal.com/node/49

    Jim Cramer agrees with you: lower rates, and by the way can the rebates:

    http://nymag.com/news/businessfinance/bottomline/

  • Michael Stich

    Brad, there's a GREAT recap from Krugman on how we got here, take the time to watch the whole thing:

    http://ocrampal.com/node/49

    Jim Cramer agrees with you: lower rates, and by the way can the rebates:

    http://nymag.com/news/businessfinance/bottomline/

  • virgilio

    Hey Brad.
    Low rates are part of the problem, not part of the solution. The risk prizes are soooo low that the risky investments aren't worth… no pain, no gain! To try to smooth it is to hide the head in the sand

    • http://www.feld.com Brad Feld

      I know. I'm very negative on the rate cuts for exactly this reason. It's basically economic crack at this point. It creates a short term high that fades very quickly and requires another hit.

  • Philip

    Based on his use of the word “crack”, I assumed that Brad was negative on the whole rate cut thing…

  • virgilio

    Hey Brad.
    Low rates are part of the problem, not part of the solution. The risk prizes are soooo low that the risky investments aren't worth… no pain, no gain! To try to smooth it is to hide the head in the sand

  • http://intensedebate.com/people/bfeld bfeld

    I know. I'm very negative on the rate cuts for exactly this reason. It's basically economic crack at this point. It creates a short term high that fades very quickly and requires another hit.

  • Philip

    Based on his use of the word "crack", I assumed that Brad was negative on the whole rate cut thing…

Build something great with me