Media blissfully unaware of how bad lastest Rate Cut news really is.

[Mugsy]

Via "Mugsy's Rap Sheet":

Fed Cuts Interest Rates to Historic Low. Bush pushes economy to brink of catastrophy.

<...>

The clearest sign yet that the Neocons and Bush have pushed this country to the brink of economic disaster came Tuesday as the Federal Reserve took the unprecedented step of cutting interest rates to the bone in an attempt to rescue the imploding U.S. economy. National interest rates were cut from a mere 1% down to “less than 0.25%” (usually, interest rates are cut no more than 0.25% at a time. A cut of 0.5% all at once has typically… up till now… been considered an unusual and dramatic cut, often a sign that things may be worse than they appear. So when the Fed cuts rates by a full 0.75% all at once… AFTER a $700 BILLION DOLLAR BAILOUT of the financial industry no less… that’s a sign of serious trouble (not to mention demonstrating what a TREMENDOUS F-ING FAILURE Conservative economics have been).

It is difficult to summarize exactly “why” Tuesday’s rate cut is such a massive disaster… especially after the Stock Market reacted positively by jumping over 359 points upon hearing the news, but think about this: The reason we have “interest rates” at all is, not just to encourage people to put money in the bank to cut spending and ward-off inflation, but to encourage other countries to lend us money to run the Federal Government (when we run a deficit)...

This will have to do for now until I have a chance to do a bit more research. Look for a more in-depth analysis of the consequences of just how spectacular this latest Bush failure truly is sometime later this week.<...>

Read the full article on "Mugsy's Rap Sheet".

[gristy]

1. From this little blurb, it seems the author has cause and effect reversed

The economy is already on the brink of catastrophy (sic), so the Fed (not bush) cut interest rates. Not the other way around.

[Mugsy]

2. Fed follows orders.

The Fed does nothing without urging from the White House.

Nor does it do anything without its approval.

"Cause & Effect" is not reversed here. As you point out, the Fed is reacting to the crisis with the only tool is has. Had the White House of provided options, this rate cut would of been unnecessary.

Despite the order, the effects could be no less catastrophic (and it's a timebomb set to go off on Obama's watch.)