Actually Interest Rate cuts was the last thing anyone wanted to see. There were several arguments for this.
1) Rate cuts means cheaper money. A cute makes money cheap for everyone not just the companies that need it. There were several commodity speculators that have access to that cheap money too. They are most likely going to flood the oil market and drive up futures prices. 2) The big issue is a credit crunch. Banks now have less of an incentive to lend to each other since they get a smaller interest rate. 3) Rate cuts are like bullets for the Fed. They only have so many bullets and to use one this early makes them less flexible in the future. -----Original Message----- From: Jacob [mailto:[EMAIL PROTECTED] Sent: Wednesday, October 08, 2008 9:18 AM To: cf-community Subject: RE: wow did you see the Asian markets? Even with the rate cuts, the DOW in pre market trading is down almost 200 points. That's not good. If the rate cut does not help, there is nothing else the govt can do. -----Original Message----- From: Robert Munn [mailto:[EMAIL PROTECTED] Sent: Tuesday, October 07, 2008 9:46 PM To: cf-community Subject: Re: wow did you see the Asian markets? and Jakarta down over 10%. now the real bleeding starts. On Tue, Oct 7, 2008 at 9:33 PM, Dana <[EMAIL PROTECTED]> wrote: > Hang seng and nikkei ouch > > On Tue, Oct 7, 2008 at 10:14 PM, Robert Munn <[EMAIL PROTECTED]> wrote: > > Crashing and burning right now: > > > > > > http://finance.yahoo.com/intlindices?e=asia > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:273043 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
