A week after 9-11 comes one of the biggest potential disasters - the next FOMC rate decision. The Fed has really painted itself in the corner with all of its very creative intervention. Investors have gotten their fix and it’s never enough.

• Injected liquidity - not enough. Inject more and more often.
• Lowered the discount rate 50 bps - not enough. Should have been lowered to the Fed Funds Rate.
• Cut Fed Funds at the next FOMC meeting - not soon enough. Should cut before 9-18
• Get one bad economic report indicating threats to recession - CUT FED FUNDS NOW!!
• Cut Fed Funds 25 bps now - not enough. Should have cut 50 bps.

Whether the Fed likes it or not or whether it was their intention or not - they look like they are responding directly to stock market needs. Who’s in charge here? Who’s in charge of what? Who’s the adult? At some point, I’d start asking questions like that and figuring out how to use some of that brilliant craftiness to deal with the fact that 9-18 is coming.

They have set themselves up for failure if they do not give in to some of the lesser demands between now and the next scheduled meeting. If they go silent and do not respond, people will be screaming loud enough to make Cramer’s rant look sane. If they do not cut Fed Funds on 9-18, this market will likely suffer much worse than the percentage decline they responded to over the past few weeks. Then what do you do. Can you afford to draw the line then after what you have done now? Investors feel the Fed has caved in to them and they got some of what they want. IT’S NEVER ENOUGH.