MSNBC just reported "Breaking News" that the Federal Reserve Board cut the discount by 1/2 percent. Stocks had been continuing their dive around the world.
Yesterday, Bonddad explained what's been going on in a special comment at Huffington Post. That guy is a genius. If you're trying to figure out what's going on, read his whole post. But, given the Fed's decision, here's one of his key points:
Fourth - and not like they listen to me anyway - but unless there is a serious slowdown in the economy, the Fed should not lower interest rates right now. That would simply bail-out a lot of people who got us into this mess. And frankly, they need for the market to hand them their hat (as it were). Sometimes the only way to learn a lesson is to swallow the bitter pill called "responsibility." Lowering rates just isn't the answer.
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