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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (89044)	8/19/2007 11:58:11 PM
From: Proud Deplorable	Respond to of 313675

"Consumer impact small The Fed's action was seen as a way to prod banks to step up their short-term lending in the face of near paralysis in many debt markets. The credit crisis began with rising defaults on subprime mortgages, loans made to borrowers with weak credit. Cutting the discount rate will not have an impact on consumer interest rates in the way that cutting the federal funds rate triggers an immediate drop in banks' prime lending rate, the benchmark for millions of consumer and business loans." koan...this means more pain is on the way. If it were not on the way then they wouldn't be thinking about cutting again. When they cut the real interest rate then we will see some action seattletimes.nwsource.com . . .