The Federal Reserve cut the discount rate (not the more important Federal Funds Rate, which is already at 5.25%). The cut took place this morning before the stock market opened and as the stock market opened it leapt up 150 - 250 points. Its actually bouncing around now as I watch the news and type.
The fix is seen as a superficial fix to help reduce investors fears like a teenager looking to reduce fears about an acne outbreak by applying extra skin care products.
This reduction of the lending rate to banks does not put more money back into the market. It doesn't reduce the gridlock of credit taking place around the US. It doesn't bail out any financial institutions, investors or home owners struggling to pay their bills.
The TSA and the Airline industry this week got into a big battle over airline safety. It would seem that a TSA inspector attempting to det...
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