Did Fed Chief Ben Bernanke and his peers do right by cutting rates?

No. The Fed did not do the right thing.

The “liquidity” the Fed has been pumping into the market will eventually find it’s way into consumer prices unless Fed policy changes, and it’s doubtful it will. The political winds simply won’t allow it. True inflation is much higher. Asset prices are deflating after a decade, or more, of poor policy decision by the Fed that encouraged asset inflation including real estate.

The Fed is trying to change a normal free market collapse of the bubble the Fed itself created. It’s trying to cure a disease with the same medication that caused it. It won’t work. The Fed needs to back off before it makes the inevitable even worse.

The dollar is inhaling it’s last breath. Whether it exhales quickly or slowly won’t matter. The end result will be massive inflation, perhaps hyperinflation, caused by the very agency that is supposedly commissioned to protect against it.

See other comments by following this link:
http://onassignment.blogs.foxbusiness.com/2008/10/29/weigh-in-did-the-fomc-make-the-right-decision/