George, I agree that a US rate cut won't help to stimulate the economies of the foreign countries, with the exception of helping to trigger a relief rally on a global basis. However, relief rallies normally don't last very long. However, a rate cut will reduce the cost of borrowing money; therefore, given all other factors remaining constant, corporate profits will improve. Of course, the real and long term solution to the foreign problems is for these countries to clean-up their bad debit, banking, political, etc. problems.
On another note, it seems like our markets are holding up fairly well today, given all the things going on...Clinton, Japanese banking reform agreement problems, etc.
Stock Bull |
