I’m not an economist or an expert by any means. But my award for dumb quote of the day goes to Michael Metz, chief investment strategist at Oppenheimer in New York, who in speaking about the Fed’s 75 point rate cut stated:
“Unfortunately they [the Fed] have no power to reverse what in my opinion is the worst post-war recession”
Now, disregarding whether you’re a bear or bull, and whether you think we will hit or already have it a recession, and how bad you think a potential recession may be, it’s irresponsible statements like the above that have sent people panicking and the market crashing.
I would like to know based on what economic indicators, Metz is basing his above statement on. Admittedly, none of them has looked particularly hot, but besides the Philadelphia Federal Reserve Bank’s regional manufacturing index huge decline in December, nothing’s been terrible. Unemployment, inflation, consumer confidence - all not good, but not terrible.
Now, I can see things getting worse before getting better. I can see it getting much worse actually. But to claim that we’re in the worst post-war recession, when the numbers don’t justify us being anywhere near the dot com bust or even the early 90’s recession, not to mention the whole stagflation thing wasting the 70’s away, is ludicrous. I can only assume that Metz made a forward looking statement and was misquoted, or is completely incompetent.
Note to self, stay away from Oppenheimer Funds.
