Better start stocking up on those comfort stocks cause aint much more to cut. You can slice the pie up into 8 cuts if you go 25 basis points a pop or 4 cuts if you do 50 basis points a pop or mix an match, shoot out a big 50 caliber round if the bear is big and mean and hit the smaller bears with the 25 calibers But thats it. Bullets are in short supply.
cut it to 1% and dollar falls in value...as dollar falls in value all prices goes up in the stores. Consumer pay for the FEDs cuts.
no free lunches....consumers pay for higher prices everywhere. consumers were ripped off during the housing bubble. and now can't even pay the interest on overpriced homes they paid for. low interest rates aren't the reason people buy houses,,,it's jobs with high oil prices business and consumers can't support the consumer economy. fewer jobs in consumer related industries with souring prices in commodities as businesses can stay in business economy.
Thatâs not what matters, what matters is the banks. See the banks went all out for the republicans in 06 and gave everyone a house. Then they stood up and said âMORE AMERICANS OWN THEIR OWN HOME NOE THAN EVER BEFOREâ This was true. They lost the election, here comes easy Ben and Paulson both friendly to Wall Street. Now its pay back time. It was the sleazy politicians who put us in this mess.
Who cares about rate cuts. The action has always been in FOMC open market operations. Plus the TAF, Primary Dealer Credit and whatever else Bernanke wants to invent. These are not bullets but bombs. and unlike bullets, they don't have a limit. Bernanke could cut to zero and just use his little inventions to continue to jump start the dead economy. It works because we should have been whiped out by now.