The Fed reduced the federal funds rate to between 0% and 0.25% yesterday. I'm no economist, but how can this be considered healthy? Especially since the previous drops, most of which I thought brought the rate way too low, have done nothing to stop the economic downturn. Obviously the problem has nothing to do with rates. (If I remember correctly, Japan tried this in the 90s and look where it got them.)
It is obvious to me that the folks running things (White House, Treasury, Wall Street) have no idea what they're doing. Panic has set in, and rather than think things through everyone is just throwing whatever it can find at the problem, hoping something will stick.
My gut tells me they're just making things worse. Putting out fire with gasoline, so to speak.
I've said it before, I'll say it again...this is bigger than any of us can imagine. And it's only just starting. We're all - every single one of us - about to get knocked on our asses...hard.
