After Rate Cut, Stock Futures Higher

After the Federal Reserve cut the key interest rate to 1% yesterday, stock futures are pointing "sharply" higher; CNBC says, "investors around the world seemed cautiously reassured by the latest steps taken by authorities to calm the credit crisis." Tokyo's Nikkei went up almost 10%, Hong Kong's Hang Seng increased almost 13%, and European markets are also up. The big news: GDP data, which shows, as Bloomberg News puts it, "The U.S. economy shrank in the third quarter by the most since the 2001 recession as the record two- decade expansion in consumer spending came to an end." A Detusche Bank economist says, "The fourth quarter is going to be much worse as the crescendo of financial disruption reached a high point this month. We're going to have a prolonged recession."

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By Jen Chung in News on October 30, 2008 8:12 AM

Comments [rss]

Future Taliban

"Thank Allah I had Wall St as my back-up plan to destroy Amerika"

- Osama Bin Laden

Bottomless Chips

1%??!?!?!?

Yeah, I'm sure the market would've set it at 1% right now.

More easy money for all!!!

See you at the next bubble burst in 5-10 years.

EastRiver

People didn't seem to have any problem creating the wealth in the 90s when the highest tax bracket is the very one that is being proposed.

Economic bubbles are like that.

rhonda718

People didn't seem to have any problem creating the wealth in the 90s when the highest tax bracket is the very one that is being proposed.

Apparently, the dividing line between capitalism and Cuba/North Korea/Albania is somewhere between 35% and 38%, who knew?

EastRiver

Dude, check your sarcasm detector.

ides_of_march

"...just in time everyone to say what a genius he was at managing the economy and creating jobs."

Really? Is he going o start a profitable business that employs people? For that matter, has he ever worked for a successful private enterprise?

Pass me some of that Kool Aid please; I too want to be deluded enough to believe against all economic common sense that taking more money from businesses and high earners will allow them to hire more people or give pay raises and provide benefits.

"Spreading the wealth" sounds fine and dandy till the people actually creating the wealth decide it's not worth the trouble anymore. Pretty soon, everybody is riding in the apple cart with nobody left to pull t.

EastRiver

More likely the economy comes out of its funk on its own in late 2011 just in time everyone to say what a genius he was at managing the economy and creating jobs.

ides_of_march

Not to worry, Obama's punitive, hostile anti-business policies will get the economy thriving again. Look how well redistibutionist policies worked in the USSR, Cuba, North Korea, Albania etc... Well, at least the welfare queens will be happy.