Condor Options

Roger Ehrenberg has it exactly right:

It doesn’t take a rocket scientist or the Amazing Kreskin to see that things suck out there. In the real economy. Being excited about lower rates is only part of the equation. Sure, you are discounting back future cash flows at lower rates and therefore increasing the present value, but what exactly are you present valuing? I’ll tell you what – lower future cash flows.

I mean, it should be obvious to people: a “potential future rate cut” party is loads of fun and all, but it’s a darn poor substitute for a healthy and well-ordered economy. Celebrating the possibility of a further emergency rate cut by an increasingly concerned Fed is like getting all excited because the experimental last-ditch chemotherapy didn’t shut down every organ in your body.

Wouldn’t it be better to not have the cancer in the first place?