peterloo
03-18-08, 07:52 AM
As all we know, the USA economy is in a deep peril of getting into a recession, after the subprime mortgage crisis
The USA Fed has already cut interest for several times, but none of them, was really effective. The news of a sudden cut, boosted the stock market price for a day, but the price soon starts falling again since people is doubtful in regard of the effectiveness.
They also injected funds into the market, hoping to bring a new life to the dying economy
So, does a interest rate and fund injection really helpful in stimulating investment and halt the economic turnmoil, as what the economic books says, or just desperate attempts which never pays offs?
The USA Fed has already cut interest for several times, but none of them, was really effective. The news of a sudden cut, boosted the stock market price for a day, but the price soon starts falling again since people is doubtful in regard of the effectiveness.
They also injected funds into the market, hoping to bring a new life to the dying economy
So, does a interest rate and fund injection really helpful in stimulating investment and halt the economic turnmoil, as what the economic books says, or just desperate attempts which never pays offs?