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I warned on Wall Street Journal Blogs before market speculation on Fed rate cut, that any rate cut will repeat 1998 and 1989 , just delay the already serious housing bubble burst, will be followed by deeper recession.
Fed 50 point cut on top of Dow Jones stock index near its peak, oil, commodities prices at its all time high this inflationary pressure situation is much worse than 1998, 1989, with 7 trillion dollar housing price gain wealth speculating in housing and stock market,
it will be very tough for Fed to cool it off, it will blow the bubble bigger, as coastal area high end housing prices soared 40- 150 % in July. even Greenspan agree that this house bubble is tough for any central banks to manage, China raise 5 time rates, 7 times bank deposit ratio, still fail to contain the soaring housing and  stock price bubble.
both Benanke and market are facing turbulent period ahead.
details can be found onwww.osawh.com/centmaf.html

Comment by Warren Huang  - September 24, 2007 at 11:16 am  

Where’s the next investment bubble? It could be emerging markets and oil, according to Justin Lahart and Joanna Slater, writing in today’s Wall Street Journal. “Stocks in emerging markets, long less costly than their developed-market counterparts, are becoming pricier,” they write. “At the end of last month, the stocks that make up the MSCI Emerging Markets index were trading at 17 times their earnings for the prior 12 months.”

Jeff Bailey of the New York Times reports on Kate Hanni, who was stranded on a flight and has become an air travel activist. “A successful real estate agent, occasional rock ’n’ roll singer and mother of two, Ms. Hanni, 47, essentially put her life on hold to take on the airlines, leaning on her husband to earn more and spend more time looking after their children so she could battle the lobbying might of the airlines,” he writes.
Andy Mukherjee, writing in Bloomberg News, says the Fed’s rate cut was the last thing the Far East wanted. “To most Asian policy makers, the larger-than-expected cut this week in the U.S. Federal Reserve’s target for overnight interest rates is just the return of an all-too-familiar headache: unwanted liquidity,” he writes.