Did you ever feel you were on a ship of fools?

That's how I feel sometimes when I watch the market zig and zag with every little news tidbit. Today housing news and the Federal Reserve's lack of simpathy for speculators and hedge funds drove share prices down. I would be perfectly happy if the Fed rate stayed at 5.25% for years. I think consistency is a good thing, and we have not had any for a long time. If it is the goal of the current members of Federal Reserve to establish more stability and predictability in the market place, I'm all for it, and in the long run everyone will know where they stand.

If the Federal Reserve lowers rates and other nations do not, where do you think investments will move? The rate has not changed in over a year and most companies did fine. The housing market was pushed by cheap money and speculation. We do not need a return of those circumstances. We can be confident that the Fed will continue to support the banking system and depositors. It ends there.

Lowering rates devalues the dollar. Perhaps foreign buyers improve our balance of trade if this happens. Even more likely foreign investors come in scooping up precious resources and property on the cheap. Let's all clean up our own balance sheets, tighten our own belts and encourage Mr. Bernanke and company to run a tight ship. There will continue to be rough times ahead but in the long run we will be better off.

Those of you who are new to BloggingStocks can check out my other stories and read Chasing Value or Serious Money to find more potential opportunities and verify my track record as well.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He is on the advisory board of Internet start-up CircleBuilder.com.

The Dow throws a 280 point hissy fit! originally appeared on BloggingStocks on Tue, 28 Aug 2007 20:15:00 EST. Please see our terms for use of feeds.