Yupe. If market panic qualify as a reason to cut rate, we need another one!!! Geez... Ben. Just let the market do the work. Fear is a good thing.
Just like I said for the past few months, rate cuts mean nothing to a market thats already inflated by rate cuts that took place 2001-2002. The market was inflated due to these same rate cuts that took place years ago. All they are doing by lowering rates is creating the same problems that were created by keeping them below 2% back in 2002. Doesnt anyone understand this, creating more liquidity isnt going to help this market or the economy, they are going about it all wrong.
I have to agreee/disagree with this. Yes, this will not solve the problem in any way, shape, or form, but it will let them keep their jobs. How did the genearl public react yesterday to the rate cut - 'YESSS!!!!! CHEAPER MORTGAGE AND CC RATES!!!!!'. It doesn't matter matter that their undertsanding of rates is wrong, they were happy about the move.