Friday, August 17, 2007

The Fed Reserve blinks

In a press release today the Federal Reserve (Fed) stated that they were monitoring current financial market conditions.

They further announced a cut in the discount rate from 6.25% to 5.75% in an attempt to restore stability in the financial markets.

This move indicates that the Fed is overly concerned with bailing out bad decisions made by lenders and investors in mortgage derivatives. The day of reckoning may be delayed, but not for long.

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