Hold On To Your Hat!
Posted in International News
Jan. 22, 2008 at 11:15
by BrendaBee
"News Alert 9:07 a.m. ET Tuesday, January 22, 2008
Federal Reserve cuts rate by three-fourths of a percent, responding to global stock sell-off and a growing sense of crisis in financial markets."
Bernanke also want the incentive monies to go to low and moderate income workers. This is the best plan IMO if money is going to be given away and the deficit increased because it is a certainty that these people will spend the money. BB
"A Global Selloff
January 22, 2008; Page A18
"What was that about "decoupling"? There has been lots of hopeful talk in recent months that European and Asian economies are starting to free themselves from dependence on growth in the U.S. Well, not so fast. Yesterday's rout in global stocks showed once again that as America goes, so goes the rest of the global economy.
The economies of Europe and Asia continue to be tightly bound to America's. Taking goods and services together, the European Union and U.S. account for the largest bilateral trade relationship in the world, illustrating their economic interdependence and common risks. Europe's well-developed financial system has already shown it isn't immune to U.S. subprime contagion, which is also contributing to investor jitters.""Yesterday's selloff suggests that Europe and Asia are in for a bumpy ride as the U.S. economy tries to right itself. Traders in those markets apparently don't have any more faith than we do in the "temporary" stimulus packages being discussed in Washington. All the more reason for policy makers to seek their own pro-growth policies, not least by continuing their attempts at tax, labor and financial reform. That's especially true of countries that rely heavily on exports. It's time to focus on policies that can create more domestic prosperity."
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