Seeing a near meltdown in international markets for the past 2 days -- the Fed had an emergency meeting this morning and opted to cut a key rate prior to the US markets opening
under that brain-child Ben Bernanke has cut a key interest rate by 3/4 of a point or 75 basis points.
Bernanke may be a smart intellect, but he sure has been completely ineffective in this role.
the rare inter-meeting move shows there is panic in the Fed about the economy. with the markets ready to open in near meltdown, the Fed had little recourse but to act now instead of waiting till the next meeting
question is -- is it too little too late? how much can the Fed control at this point with international markets in turmoil.
Amazing what Bush's economic policies have done to contribute to this mess. and now he wants to give us $800 to spend. when do I laugh?
i am not an economist but dont lower rates also mean it is less attractive for China, Indian and Dubai to put there money here as well --- doesnt that make the dollar LESS attractive (it is already pretty ugly right now).
Roll out your wheelbarrows
UPDATE
Dow drops around 400 points......