Michael Gracie

The Economist calls the latest move desperation. With only a week to go until the next meeting, a 75 bip cut might make an investor think the Fed knows plenty they don’t.

UPDATE: It’s funny that oil for March delivery had punched 7-week lows when the Fed made the announcement - I’m not sure how long that will last now. You’d almost think the Fed wants $5 a gallon gas.

Senator Charles Shumer (D-NY) is calling for a probe on purported gasoline price fixing.

“The bottom line is they are producing at 85 percent capacity when they should be producing over 90 percent. Are they scaling back production? Only by subpoenaing the companies and looking in their books will we get that answer.”

I wonder what anyone is going to get from a pile of corporate books and records, other than smoke and mirrors. Chances are, even if you get straight talk, it isn’t going to be of much help.

You want to find answers? Look here instead. If you are lazy, let me clue you in - all you are going to find is free markets at work. You want a 400 horsepower V-8 in that 7,000 pound vehicle that you drive 100 miles round trip to work each day, back and forth from your sprawling suburban home?

Well then. You are going to have to pay the price.

The Daily Kos reports that the GOP is getting a little nervous about all the oil companies reporting massive profits in the wake of skyrocketing energy prices. As if the Republicans didn’t have enough problems to deal with, now everyone will start putting two and two together, and presuming the Iraq War was all about lining oil company pockets.

What did they expect?
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