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CNN financial commentator basically said ‘there’s not enough consumin’ goin’ on out there.’
This rate cut is intended to cause Americans to spend more.
Ruhh-Rohhh
Emergency?
Does that mean you missed something or you screwed something up?
Seems this move was more to ease world market concerns than all else. Here’s an idea. If investors and governments around the world are so concerned that Americans will not be buying the goods they produce, let’s stop messing with the fed rate, scrap any plans for our government borrowing money for an economic stimulus package, and have all those other nation foot the bill of such a package. Would be nice to spend their money for a change.
This shows pure panic. I think its a bad move. A day late a dollar short.
Hang on Indie. We go for ride
I'll bet that might help things out.
Futures are still -way- down,
Dow Jones -418.00 11688.00 1/22 9:13am
We do not have a liquidity problem, we have a -solvency- problem.
Way too much bad paper floating around and the criminals are still hiding it...
Holly Crap! 455 points in a few minutes.. WOW! Now we know why the Feds did a cut.
Nice to see reality posted. Thanks.
Yahoo’s Finance page seems to have a weird refresh problem. It keeps showing the Dow at around 4000 after initially showing it in the 11000’s.
Freaked me out at first. :) Anyone else run into this or is it just me?
PERMANENT MARGINAL INCOME AND CAPITAL GAINS TAX RATE CUTS.
Productivity growth is what counts for economic growth. You can get productivity growth by lowering the penalties (taxes) on capital and labor applied to productivity growth.
The main way to get the economy to apply more investment (capital) towards productivity improvment is to lower the taxes on the returns you get when you invest for productivity. That means a Capital Gains Tax Cut, and a Corporate Income Tax Cut. Lower Corporate Taxes works for all of Europe (a socialist haven, BTW), it will work here.
The main way to get people to be more productive (i.e. work more) is to decrease their marginal income taxes. That causes actual economic growth because people are penalized less for being productive, so they work more.
The really productive, expanding and hiring business owner needs to see improved incentive (i.e. lower income taxes) before he'll work harder.
Tax cuts that put money in people's pockets to spend gets spent. That doesn't improve productivity. It moves money from the Government's spending account to your spending account, surely a salutory move since the government usually just immolates the money.
Nonetheless, spending doesn't cause growth. Keynsianism is dead.
Investment for productivity improvement causes growth. Supply Side Economics works every time it is tried.
Rather than a political-pander-tax-cut, let's have a tax cut that works:
PERMANENT MARGINAL INCOME AND CAPITAL GAINS TAX RATE CUTS.
We should just add a zero to the whole money supply.
Well, the only thing the rate cut will do is insurre the Dow drops 300 points today, rather than 900.
What they really need to do is to CUT SPENDING and CUT TAXES, especially corporate taxes.
They should make additional cuts in the short term as needed, however.
The temporary rise in equities will provide a perfect opportunity to short the US market.
Ben Bernanke should be fired. He is completely clueless.
He makes Greenspan look like a freaking genius.
My prediction: The markets will fall on new fears of inflation.
I’m for leaving interest rates alone for 100 years. Let the Fed arbitrarily pick an interest rate then call it a day. Let the free market work out the excesses along the way and let the economic downturns untangle themselves.
Fed intervention is madness.