It isn’t panic. It’s the Fed acknowledging reality, and admitting that it’s been wrong (but for today only).
I’ll go with your “acknowledging reality” if you concede that the data that went into their famous oft-repeated policy of “data-based decision-making” that wasn’t obvious in the past week was multi-percent stock losses all over the world.
A guy on CNBC right now is claiming that MBIA/Ambac problems are the obvious catalyst for today’s Fed decision, but we all know that’s BS. How can a triple-A rated company issue bonds (1) at 14%, (2) that drop 30% in face value in two weeks. And it’s been obvious for weeks and weeks that MBIA, Ambac, et al are dead companies walking.
Ah the new CNBC guy and Kudlow wannabe Dennis Kneale is on, oh that guy is a trip.