The reason is that the fed communicates with the banks and the banks are insisting on a cut. They have lots of writedowns still to be sorted. Also, the US economy is slowing due to housing and other issues and cutting rates helps boost the economy.
We had 3 brutal sessions citing credit issues. We then had 2 up sessions citing easing of credit issues. These moves are beyond logic.
Over 7000 web 2.0 stories http://news.google.com/news?hl=en&um=1&ie=UTF-8&tab=wn&q="web+2.0"&scoring=d 19000 social networking stories!! http://news.google.com/news?q="soci...rch+News&hl=en&um=1&ie=UTF-8&tab=wn&scoring=d There is no way we're not gonna rally huge. We're in another boom.internet, smart phones, social networking
slowing us economy ?? i thought u said huge growth for the us ... web 2.0 blah blah .. which is it sport ???
The US economy is growing at a decent pace, but the global economy is booming. However certain SECTORS of the US economy are booming like tech. Another rate cut isn't needed. But the fed will cut anyway, which is all good.