Gothamist: Fed Cuts Interest Rate to 1%, Lowest Level in 4 Years

starrygordon

Thu, 30 Oct 2008 00:44:44 -0500

The credit bubble which led to the present catastrophe was inflated by low interest rates dictated by the FRB. This is more of the same, but now it is an attempt to replace disappeared private credit with government credit. It probably won't work. If it does work, it will only lead to an even bigger catastrophe in the future. Meanwhile, the Federal budget deficit, trade deficit, deindustrialization, imperialism, growing inequality, and deterioration of the infrastructure will continue to do their destructive work unhindered by government or private leadership, whose only solution to any problem is easy money. The Third World welcomes you....

NannyState

Wed, 29 Oct 2008 22:06:56 -0500

What's the point of lower interest rates if nobody will lend money? Raise it, lower it, I don't care, just keep sending me those $600 rebate checks you stupid Fed Fuck!

Future Taliban

Wed, 29 Oct 2008 15:52:53 -0500

Allah Akbar!. the USSA continues to slide down the slippery slopes of economic oblivion!. I'm SO HAPPY !!!!!!!!!!!

jterry121

Wed, 29 Oct 2008 15:49:40 -0500

Karate Kim should Kick Bernanke's Ass

Karate Kim

Wed, 29 Oct 2008 15:16:31 -0500

A lot of people have criticized the Fed for being lax on inflation, as they focused on “core inflation” which excludes the big food and energy prices. However Bernanke seems to have been right, inflationary pressure from commodities has reversed dramatically. The price spike in commodities (which freaked out the consumer) was a bubble, which has deflated due to the grim outlook on the economy (Oil is in the $60’s down from the $140s in 4 months). Look at all the value deterioration in the stock markets, 0% financing for big ticket items like cars and all the major sales at department stores (going to be worst holiday season ever), deflationary fear should be and is driving Fed policy. Deleveraging of companies and banks is what we are seeing in the markets, combined with deflation of prices can lead to horrendous results, look at the Great Depression.

Trilby16

Wed, 29 Oct 2008 15:14:00 -0500

OK. Could my credit card interest rate please come down now?

Papercutninja

Wed, 29 Oct 2008 15:11:32 -0500

i wish this could be explained in cartoon form.

matty

Wed, 29 Oct 2008 14:53:17 -0500

Is this going to drive the price of the dollar down? Lead to inflation? Was this necessary? Someone please help me out.