For any of you who may be keeping up with the ongoing recession and/or mortgage crisis, I happened upon a very good article yesterday written by an accountant in Chennai, India.
It's pretty sad that an accountant in India knows more about the US banking and financial system than most of it's citizens, but hey, we just live here.
Quote:
"The recent cut in the benchmark interest rates by the US Federal Reserve by 75 basis points from 4.25 per cent to 3.50 per cent on January 22 and a further 50 basis points to 3 per cent on January 30 as a response to a possible recession in the United States has completely surprised analysts across the world.
Unprecedented as it is, this steep cut in the interest rates effected by the Fed has the potential to dynamite the US dollar, the US economy and, by extension, the global economy.
What could surprise many is the fact that the US Fed's prescription to reduce interest rates, ostensibly to tackle the prospect of a recession might well turn out to be its Waterloo. Put bluntly, the US faces as much of a risk of a recession after this rate cut as it did before."
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Why the US rate cut my kill the dollar. (Part 1)
Who cares for the dollar? Not the Fed, surely! (Part 2)
Now go hurry up and read it before they cut another undersea cable
