The Back Alley Archives

And will we end up like Japan's lost decade?

The Jan fed fund future now nearly fully prices in a 75 basis point cut by the FOMC, this after the Bank of Canada cut by 75 basis points this morning.

a1's link: http://www.fxstreet.com/fundamental/analysis-reports/us-market-update/2008-12-09.html

to be clear, the BoC is a laggard to the rest of the world...the quote in AAs post is a bit deceptive in that it implies the FOMC is reacting to a BoC action...the BoC reacts to us to be clear....we are canada's biggest trading partner...they react to us, not us to them.

I guess that implication can be read into the quote but I didn't take it that way.