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This pretty much sums it all up

Not old enough, apparently. Here's the data http://www.newyorkfed.org/markets/statistics/dlyrates/fedrate.html The last time they cut the discount rate independently of the fed funds rate was Jan 4, 2001.

It's always cut (or raised) in tandem with changes in the fed funds rate. I can't remember it ever being lowered independent of the fed funds rate.

They didn't lower the more important target fed funds rate.

Movements in the libor rate suggest high demand for liquidity, hence the feds liquidity injections the past week. That market has certainly not seized up.

It's a symbolic attempt to restore confidence and calm the credit markets. But I agree it will fail because the root problem is not lack of confidence, it's, simply put, too much debt in the economy in relation to interest rates.

Nobody ever borrows directly from Fed, I believe the last time anybody ever borrowed at the discount rate was when continental airlines when bankrupt in 1983. The reason why nobody borrows at the discount rate is because the discount rate is higher than the target overnight rate. Banks can...

Trust me, your investors will leave you first.

5 years is absolutely not a drop in a bucket in this industry. Most hedge funds don't survive 2 negative years because of the high watermark. Better off closing shop and starting anew.

We're at the point where the damage has already been done and lower interest rates won't be the panacea that people think it will be, unless they are completely cut to near zero. There is too much debt in the hands of deadbeat homeowners and deadbeat companies for slightly lower interest...

Well US long-term interest rates still have a lot of room to go lower and stimulate credit, for sure. Granted though, if long-rates in the USA were near zero, the fed would be in a similar situation to the Japanese. Which is why Bernanke hypothesized the academic notion of dropping money from...

All the above won't happen precisely because the fed can reflate the economy by lowering interest rates. But I agree that the potential for a great depression type scenario exists because of the huge amount of debt outstanding and our dependence on even more debt to grow further.

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You mean after the dow topped out at 14,000? Or Before?

Dow is meaningless, all the pros follow the $SPX, therefore the dow's movements and whether or not it breaks some point is really hostage to the sp500.

http://bigpicture.typepad.com/comments/files/crystal_method_right_here_right_now_bill_poole_no_idea_mix.mp3

But no ET'ers seem to be, eh? :D

2 months and 21 days of gains :D

How can this be? They have gigantic trade surpluses, a government that is flush with cash, a 1.2 Trillion Dollar foreign exchange reserves etc. Yet they are the largest borrower from the world bank which is funded by western tax dollars. Makes my blood boil.

800+ point fall in the Dow. You heard it here first.