While the Housing Bubble implodes all across the U.S.
Just like Alfred E. Neuman. LOL ! LOL !
ping
Not for you and me, my friend. For Goldman, Merrill, Citi et al, they’ve not only rec’d a 1/2 point cut at the discount window, but a 1/2 point reduction in the fees they pay the Fed to borrow against pledged securities, plus an extension from “overnight” to “thirty days”... pledging the very securities that are underlying this whole stenchy situation. While the Fed has “broad discretion” as to what they will accept as security, I’ve seen no class of securities valued at less than 85% of face.
Cutting the fed funds rate will cause the market to rise, but also possibly inflation. Inflation is toughest on people who rely on the bank accounts for most of their savings... so mostly poor and elderly.
All the fund managers can show how great of a return they’ve had, but the real return won’t be that much.
While the Housing Bubble implodes all across the U.S.
Just like Alfred E. Neuman. LOL ! LOL !