fri 6/6/2008 11:48am

although the employment number miss today was not great and all on the umemployment rate (5.5% vs 5.1% expected), this news combined with the rhetoric from richmond fed chief jeffrey lacker of a day ago, made the market very nervous that in a real recession, the fed may not bail out financials with another easing cycle. jeff lacker had "moral hazard" and all sorts of political mumbo jumbo in his speech in london. more to further his personal agenda and satisfy the european central banks need for their tightening bias. it's puzzling where lacker stands on the us economy and his constant attacks of the fed chief does not help the financial markets. a man from the bluegrass region of america, lacker has a rather undistinguished list of academic accomplishments and has worked extensively in a swiss bank. perhaps he is working for the ecb more than the fomc. it's time lacker keeps his remarks within the confines of his own home. resigning from his fed position will go a long way in helping this economy back on track.