leading up to a black tuesday, page-11

It's an ill wind that blows no good. Benanke was caught between a rock and a hard place. On one hand the underlying economy was a bit hot and debt was getting out of control and on the other markets have been collapsing. His hand was being forced to cut rates to help the latter but his preference was clearly to hold rates to prevent the former running out of control. These latest employment numbers should be a clear sign to him that perhaps the real economy is also slowing and will thus give him every reason now to have a clear rates cutting policy. rates cuts will now be a done deal and maybe there can now be room for extra cuts if they are needed.