There is a nasty rumor that the Fed is about to lower the rate it uses to loan money to banks. Does the Fed know how to do anything but cut interest rates? Seriously, why is this latest rate cut supposed to save the economy? What incentive do investors have to buy treasuries or money market vehicles with ever-dwindling interest rates.
Note to Politicians and the Fed: Maybe try raising interest rates?
Why should I buy your paper when you keep telling me not to by lowering rates? If you want more money in the credit sectors, give investors a reason to give it to you.
