Indy Telecom & Industrial Media

Will the fed cut rates today?

My prediction is that a 50 bps is likely; however, a 100 bps is very unlikely. As it is, we are at record lows, so going any lower is more likely to hurt the economy than help it (all that cash running amok in the economy has to do something).

Then again, as Paulson and Bernanke seem to be fans of Keynesian economics, they may just hope to inflate our way out of all this bad debt. I mean, do you really see the US paying back the trillions in national debt?

A quick look at this graph from yesterday indicates that Bernanke seems more intent on cutting rates than Greenspan.

Then again, a lot of the problems today are because of Greenspan’s policies, so that may leave something to be desired.

Update: Fed cuts the rates by 1/2 point, and we’re at a record low of 1%.

“Be the change you want to see in the world.” - Mahatma Gandhi

The Economist has a rather insightful article on capitalism. I especially liked this concluding quote -

Capitalism is at bay, but those who believe in it must fight for it. For all its flaws, it is the best economic system man has invented yet.

So, I was off by a few weeks.

Bite me.