The Fed to the rescue again…well, sort of
Posted by admin under: Main Jan 31
The WSJ always does a great job in parsing the Fed’s statement. The move by the Fed wasn’t a surprise and the financial markets probably would have freaked if it was anything less than 50 basis points. While this may provide some short term relief to the mortgage meltdown, it could have a much worse long term affect.
If you stop and think about it, in a span of 10 days, the Fed Fund rate dropped by 1.25%! There are many things to blame for the current poor economic conditions that we’re in. But one of them, and many “experts” feel the same way, is that under our buddy Alan Greenspan, the Fed made rates too low back in the day. It was too easy to get cheap money. Could this happen again? Lets hope not. The dollar is only getting weaker and oil prices continue to climb. And the Fed can’t keep coming to the rescue.
Source: The Fed to the rescue again…well, sort of
Thursday, January 31st, 2008 at 4:35 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.