Bernanke will cut down to at least 4.25% anyway, does it matter that he do it 25 25 25 25 or 50 25 25? It doesn't matter. Rate cuts are overrated. If a person has bad credit and lots of debt, it doesn't matter if rates are zero, they will not be able to get a loan. Mortgage rates are priced off of long term rates, not short term rates, long term rates aren't going to go down because of rate cuts. All this Fed talk has masked what really matters, and that's the economy and the elimination of no-risk credit markets. The housing and credit bubble popping at the same time is a deadly combination, people write about subprime this and that, but I don't think people are worried enough about the consequences. It is showing up in the bond market, but the equity market hasn't priced in the realities. With market indices up almost 10% this year in the face of all the problems out there, there is a just a huge amount of complacency that onces Q4 rolls around, we'll have the Santa Claus rally like always. Its going to be a very rough Q4, the current stock market prices are pricing in a very rosy picture.