Fed has panic attack: cuts rates by 50 bps, 125 bps in eight days
Looks like I was wrong earlier. The Fed gave in to Jim Cramer and his friends on Wall Street by deciding to cut the Federal Funds Rate 50 basis points on top of the 75 basis points they cut last week. That brings us down to 3%.
That's a nice SCREW YOU to those Americans who have been diligently saving money in their savings account. Now, the rate you'll get paid won't even cover the government's stated inflation, and you'll have to pay taxes on the measly gains as well.
I wonder what Hank "Strong Dollar" Paulson thinks about this move? The dollar plunged even more after the announcement hit the markets. Too bad we don't have a Plunge Protection Team to support our currency. All they seem to care about are asset prices (i.e. housing and stocks).
More info on the rate cut at Bloomberg. I'll be back later tonight with more analysis.
