Marginalizing Error?

" Our nightly segment the bottom line is we learned earlier the Federal Reserve today made a big move to try to calm fears of a deep recession. The federal funds rate that's the interest rate that banks charge each other specially for overnight loans was slashed half a percentage point down to 1%. That means borrowing costs for millions of consumer and business loans -- banks are now lower. The 1% rate the lowest in four years and if the Fed decides to drop it again and -- will have the lowest rate in half a century. The expectation of a rate cut today a big reason why stocks soared yesterday. But the -- explain what it all means mark sunshine president of first capital of commercial lending firm with clients across this nation. I know that all right -- don't have to charge or won't be charging each up each -- much for -- interest overnight loans. But what does it mean to provide credit card in my car alone if I get it. Well it doesn't mean a lot for your credit card in -- because typically they're not tied. To Fed funds but would it doesn't mean it's your home equity loan which may be tied to the primary we'll probably be less expensive tomorrow. And it also means that a lot of business loans that are tied to the prime -- Primary employers of people. Will be. Getting the benefit of also a drop in interest rates tomorrow you're not all the companies for many companies you know I talked to a couple of the experts downtown here in New York todays -- You know this kind of smacks of desperation because. Until lowered it again would be at almost unprecedented move it seems as if according to a couple lay analysts today that there really running out of bullets. They're getting close to running out of bullets and dropping interest rates because after all we're getting really close to zero. But what they did today was merely to. Ratifying confirm what they've already done in the markets typically when they drop interest rates they then increase money supply right after that. This time they jammed up money supply pumped tons of liquidity out. And the drop in rates was really just to ratify would have already happened which probably is why the market didn't really react to -- you know they don't have to loan money at all if they don't want to we gave them that billions and billions and billions and billions of our tax dollars. And they don't have to have to -- it out of all in Great Britain they did the same thing right before we did and they mandated if we give me this money you have to landed out. Why didn't that happen here what's the logic there. -- you know I I I I'd be hard pressed to explain the logic as to -- you've got to make it much better doesn't do that. No I'd -- I don't think I don't think it makes a whole heck of a lot of sense I think the the -- capital injections that went into the banks should have been mandated for in fact. Recycling into the economy. It seems like that the they be approached the treasury is taking -- is relying too much on trickled down with too much of a delay at least for my taste. But you know they're there others that disagree with happen. -- yeah what again a lot of the military had no more money in their banks those the ones who disagree because they can pay executives they can make payroll they can buy lunch with that money if they want -- no rules it just seems a little weird I'm just say. More sunshine gives life I I have I have been I have been degree -- you're that's like throwing red meat in front of a tiger when you say that's me. Because we we can talk for hours about what the Bush Administration. Didn't do that they should have done. To help the economy in enforcing rules and enforcing regulations that were on the books -- it last time I checked it began long before then but I hear what you say sometimes that tiger needs some red meat -- and so I'm going to be thanked. Parents and student."