US cuts interest rates by 75 basis points

[Sneeky]

Panic station to prevent metldown.
This should kick a little life blood into their faltering property market.

The U.S. Federal Reserve on Tuesday slashed U.S. interest rates by a hefty three-quarters of a percentage point, the biggest rate cut in more than 23 years, in an emergency bid to lend support to a U.S. economy some fear is on the verge of recession.

http://www.moneyweb.co.za/mw/view/mw/en/page95?oid=186954&sn=Detail

 

[Phenom]

strange thing is that we didn't have a bear market in quite a few years, it has always recently been called a "quick market correction", could this be different?

 

[sand_man]

Panic station to prevent metldown.
This should kick a little life blood into their faltering property market.

either way it's good news right?

 

[kiepie]

And yet again the FED comes to the rescue. And they are not in panic they say. But a unannounced cut 9 days before the meeting looks like they want to stop this blood bath soon.

IMHO this is all part of a healthy economic cycle. With interest rates lower all the extra money is going into paying off debt. And if it's going back into consumers hands and on spending that sounds fears for inflation worries in the US.

Didn't this all start of the low interest rates in the first place? More lending and to those (bad credit records, ect.) who shouldn't have gotten it in the first place? And now we have the credit crunch with billions of dollar written off.