Will Mr. Greenspan's 50 basis point hike prevent the "ship" from running into the "dock" as you explained most amusingly in your analogy several months ago? (January 11, 2001)

  That cut alone will not do it. What we like is the fact that it was an aggressive move (it was needed last year) and the Fed said it stood ready to do the same. It will take more cuts and quickly; there are still those last 75 basis points of hikes out there that will hit the economy. The 50 basis point cut does not simply negate that last hike as there were plans scuttled because of the slowing economy. Those are not put back on the table just because the Fed has cut rates. Companies need to come to their own conclusions about whether the economy is back on track to put money to work. The ship is still heading at the dock even though the captain cut the engines after May 2000 and nudged it into reverse on January third. He needs to throttle up soon.


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