I have heard the word rate cut about 129 times today, I don't understand why the they bring this question up and why the federal reserve has to do anything. Why does the federal reserve have to intervene with the problems that were created by the market to begin with. They created this liquidity and easy credit game and now that the bubble is bursting everyone thinks its time to let the federal reserve step in and cut rates, thats not how the game is played. Everyone is so desperate for a rate cut. How many billions of dollars between US and Europe were pumped into the market today to keep it from collapsing. Pathetic.....
Its your own damn fault for watching CNBC, you've been told hundreds of times how worthless that channel is yet you keep quoting them all the time.
The only way for fed to cut rate; if Asian countries appreciated their currencies ( China or Japan). Or; Let them purchasing more our debts at discount rates. Clearly China and Japan have little appetites for more American debts at current level of yield. If for some unknown reasons; they keep push the yield down; they should just call themselves our slaves.
I don't know much about credit and currencies, but could this be an orchestrated plan by our fed to stick it to china? Kinda like if you get locked into a stock and the market maker knows they have people locked. If you want to cover its gonna cost you. Japan is the biggest holder of our debt but they pose less of a threat.