Rosemary's Thoughts: Fed cuts rates 3/4's of a point

Tuesday, January 22, 2008

Fed cuts rates 3/4's of a point

Posted by Rosemary Welch at 1/22/2008 05:36:00 AM Labels: business, economy, g-News, money, open tb, taxes

Here is some breaking news about the Fed cutting rates by 3/4's of point, and urging Congress and President to cut taxes quickly to avoid a recession. It is short, so I have the entire article for you.

Fed Cuts Interest Rate as Treasury Secretary Urges Quick Action on Economic Stimulus Plan.

WASHINGTON — Treasury Secretary Henry Paulson said Tuesday that Congress and the administration need to agree quickly on a package of tax cuts as the Federal Reserve cut a key interest rate by three-fourths of a percentage point to reinvigorate the economy.

"Time is of the essence and the president stands ready to work on a bipartisan basis to enact economic growth legislation as soon as possible," Paulson said in remarks to the U.S. Chamber of Commerce. He spoke as House Speaker Nancy Pelosi and leaders in both parties prepared to meet with President Bush at the White House to discuss a stimulus bill.

Such legislation presumably would involve tax rebates, business tax cuts and funding for a Democratic-led call for additional food stamp and employment aid.

The Fed's decision to slash the federal funds rate — the interest that banks charge each other on overnight loans — apparently was the biggest one-day move by the central bank in recent memory. The Fed cut the rate to 3.5 percent from 4.25 percent.

Its action was the most dramatic signal that it can send of its concern about a recession.

Hat tip: Fox News.

You may not want my two-cents, but here it is anyway. I wish they would leave the daggone market alone. Really. The housing always gets into a bubble, and most of us were waiting were for the prices to come down before we bought our house. Thank you very much, now I cannot buy a house because you are falsely keeping the inflated prices high. This is NOT what a free-marketer does.

I understand the panic due to the other countries tanking in their stock markets, but may I remind you that China has an unsustainablely high (falsely high) rate of exchange on its money. What is it, the yen? They refuse to accurately disclose the actual trade-in value. I don't give a damn if they tank! Doesn't anyone remember that this is what they were trying to do to us?

Nor do I care that Mexico is having a problem with all the illegal aliens here are going home to Mexico. I have no sympathy for that government. They actually sent a delegation to Arizona's STATE government to ask them not to follow Arizona's laws! That takes testicles! Yes, they are feeling the pressure of having to deal with the high unemployment, health care, and whatever crap they robbed from us that they are no longer able to steal. But I am getting off track.

The facts are, the Fed is one that raised the rates in the first place. If there is any blame to go around, look to Bernacke. (sp?) The rest of the blame belongs not on the sharks who were able to get you to sign over your mortgages to them so that you could enjoy low payments. This really irks me. YOU are the one who knew you couldn't afford the house. YOU are the one that enjoyed your house while I had to wait patiently for the bubble to burst. So why I have to pay for YOU to keep YOUR house? I SHOULD NOT, and that's a fact. Good day.