2008-08-08

1% interest rates?

No matter what the reason of latest USD raise is, the FED now have plenty of room to cut.

Some people believe FED is out of bullets. No, FED still have 7 bulets left. Think - 2.00% rates, 0.25% increment - it makes 7 cuts until rates reach 0.25. I do not think FED will cut to 0.25, nor to 0.50 as Sir Greenspan did, but what about 1.00% ?

Why not. Is no longer impossible. USD is up, Gold is down, Oil is down.
At least kind of down :-)

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