Surprise...!! The Fed jumps in first thing Tuesday morning with a .75% rate cut...

the headline SHOULD be focused in on the fact that the fed thinks things are so goddam serious that it jumped in right after the opening bell on wall street with NOT a half a percentage point rate cut but a THREE-QUARTERS of a point rate cut, not even waiting until their regularly scheduled meeting next week...

U.S. stock futures seesawed Tuesday after the Federal Reserve, responding to a growing financial market crisis, slashed interest rates 0.75 percentage point.

Dow Jones industrial futures, down more than 500 points, or more than 5 percent, before the Fed move, were fluctuating violently an hour before the start of trading, but improved to a level where they were down 206, or 1.70 percent, to 11,900.

The Fed move was unsurprising, given that world stock markets were falling precipitously the past two days, and that U.S. stocks had tumbled last week amid growing fears of a recession in the United States. Still, the markets are still quite anxious, not sure that even interest rate cuts will lift an economy slammed by an ongoing housing and credit crisis.

The Fed's move came a week before the central bank's regularly scheduled meeting, a sign that the Fed recognized the seriousness of the world financial situation.

the other inconvenient little item that should be in screaming headlines is that the dow was down FIVE HUNDRED POINTS on top of last week's THREE HUNDRED POINTS, and that was before the fed stepped in... anybody who thinks we aren't teetering on the edge of a cliff had better crank their eyelids open right quick...

there's no need to read between the lines of this paragraph...

The Fed's decision to slash the federal funds rate — the interest that banks charge each other on overnight loans — apparently was the biggest one-day move by the central bank in recent memory. The Fed cut the rate to 3.5 percent from 4.25 percent — a move that represented the most dramatic signal it could can send of its concern about a recession.

the same article goes on to quote paulson talking to the u.s. chamber of commerce this morning...

"Time is of the essence and the president stands ready to work on a bipartisan basis to enact economic growth legislation as soon as possible," Paulson said in remarks to the U.S. Chamber of Commerce.

[...]

The rush of developments came on the same day that Democratic and Republican leaders in Congress were to meet with President Bush at the White House for talks on economic stimulus legislation. Such a measure presumably would involve tax rebates, business tax cuts and funding for a Democratic-led call for additional food stamp and employment aid.

Paulson said he was optimistic the administration and Congress could find common ground and "get this done long before winter turns to spring." Bush and the congressional leaders are looking for quick agreement on how to pump as much as $150 billion into the ailing economy to stave off a recession. The president last Friday put forward the broad outlines of a stimulus plan that would include tax cuts for individuals and businesses.

The administration's initial efforts failed to reassure global stock markets, which plunged Monday on rising fears that trouble in the U.S. economy could translate into weaker economic activity worldwide.

in something completely in character for the bush administration, paulson leaves out a mere trifling detail...

In his prepared remarks, Paulson did not specifically mention the steep plunge in global markets on Monday, which included declines in many markets that were the largest since the September 2001 terrorist attacks.

i was just telling my son (he, his wife, and the grandsons are getting ready to head out for work and school) about the goings-on and the depth of the shit we're in... he asked if anybody in the administration has actually come out and SAID we're in deep shit, and i said, "of course not..." his comment to that was, "unless they come out and SAY it, nobody's going to pay any attention..." my son isn't anywhere near the news junkie that i am, but he does understand a FEW things...!



the above photo of paulson is from a video clip of january 6 where paulson sat there and listened to bush and didn't say a goddam thing... just look at his face... my theory is paulson is actually a re-animated corpse...

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