Does interest rate cut + fund injection really helps?

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?

03-18-08, 07:52 AM	#1
peterloo Commander Join Date: Sep 2006 Posts: 462 Downloads: 2 Uploads: 0	Does interest rate cut + fund injection really helps? 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? __________________ Romeo is here, but where is Juliet? The 中国水兵 (Chinese Sailor) in subsim