BCA: "Fed Falling Behind The Curve"

from the Bank Credit Analyst:
The rioting in the financial markets this month must be reversing this economic complacency. Credit conditions are tighter than they were before the Fed began cutting rates, and strains could be spreading into the prime mortgage market (as previously noted). Bottom Line: The financial markets are warning of real economic damage, which will force the Fed to drop its concerns over inflation and provide a significant amount of additional easing.