Menu
Start a Thread Start a Poll
US cuts the interest rates by 75 points
Mar 19, 2008 03:23
  • JIMMYB
  • Points:
  • Join Date: Feb 7, 2007
  • Status: offline
According to the news, US Fed has announced to cut the interest rates by 75 points. In recent six months, US Fed has cut the interest rates six times by 300 points to curb subprime crisis and boost US economy. However, it seems that this method hasn't taken effect. Can interest cuts save US economy? Many people have negative views. They are afraid it might cause serious adverse effect-----inflation.

What do you think? Is this means useful?
Mar 19, 2008 10:11
#1  
  • GARYKINKADE
  • Points:
  • Join Date: Jan 8, 2008
  • Status: Offline
Lowering of the interest rate would help thru an increase in (domestic) consumer consumption but the offset would be a decrease in foreign investments (because of the interest rate decrease+ dollar depreciation)
Mar 19, 2008 10:22
#2  
  • GARYKINKADE
  • Points:
  • Join Date: Jan 8, 2008
  • Status: Offline
Correction: "Decrease in foreign investments" should read "Decrease from foreign investors"
Mar 19, 2008 15:00
#3  
  • GARYKINKADE
  • Points:
  • Join Date: Jan 8, 2008
  • Status: Offline
3;58 EDT dow down by -2.08%, well, the lowering of the interest rate helped for appx. 3/4 of a day.
Mar 19, 2008 21:25
#4  
  • JIMMYB
  • Points:
  • Join Date: Feb 7, 2007
  • Status: Offline
"Lowering of the interest rate would help thru an increase in (domestic) consumer consumption but the offset would be a decrease in foreign investments (because of the interest rate decrease+ dollar depreciation)"

Thus, US should encourage more foreign investors to come in. But the fact is not. Chhinese Huawei's failure to merge with 3Com is a good example.
Post a Reply to: US cuts the interest rates by 75 points
Content: ( 3,000 characters at most, please )
You can add emoticons below to your post by clicking them.
characters left
Name:    Get a new code