If you didn’t catch Tuesday’s edition of Your World with Neil Cavuto, here’s what you missed:
Home equity loans just got cheaper.
Adjustable rate mortgages just went lower.
And big-ticket items — like a new car — just got more affordable.
All because Alan Greenspan and the Federal Reserve cut short-term interest rates another ¼ point on Tuesday. Greenspan’s goal is to restart the slowing U.S. economy. But since six prior cuts haven't done it, will the seventh one be the charm? And had the Street already factored in the ¼ point cut?
Wayne Angell, former Federal Reserve Governor and chief economist at Bear Stearns, wondered if Greenspan was aggressive enough.
“The Fed has never caused the stock market to fall when rates have been cut more than anticipated,” said Angell.
Bur Michelle Girard, Treasury markets expert at Prudential Securities, predicts the cumulative effect of the cuts will be felt.
“[The Federal Reserve] have cut already by 3 percentage points year to date,” said Girard. “We've never seen them act so aggressively… be patient, this stuff doesn't happen overnight.”
Here’s what you had to say about the issue:
Stop blaming Greenspan. Lets put the blame where it belongs. The venture capitalists who gave 18 year-old kids millions for designing a web page, rich CEOs who can't manage their companies, and stupid investors like me who put blind faith in venture capitalists and CEOs. Grandma was right -- put your money in a shoe box and hide the shoe box.
The Markets had been looking up until "The Announcement" when every indicator turned negative. All Greenspan had to do was lower the interest by .50 and the market would have continued its upward movement. I have been watching with horror, each of his moves this year, as I remember the 4Q of 2000. Why has he been allowed to continue? He single handedly has been able to undermine the Economic turnaround that President Bush and his administration have made possible.
Why don’t you guys in the media start a campaign to get rid of the Fed? Make Congress send all fiscal matters back to the treasury where they belong!!! Everyone knows that Greenspan is a lackey of the large banks in this country. And who are the ones that set up the Fed? The banks and other large financal institutions, that’s who!!!!
This should be sung to the tune of Bananas: yes, we have no cojones, we have no cojones today!!
I watch FOX News intently every time Greenspan is due to make another FED announcement, I pay particular attention to his "FED walk" ...as I continue to hope he'll get smushed by a bus while crossing the street.
That was a week cut and it appears Greenspan has lost control of the economy. I do not think he knows what to do next. Consumers are spending, but management in businesses are failing. We are going to have to sweat this one out. This is not recession though.
There's a message that needs to be said,
By a man with a gigantic head,
If Greenspan would just,
"In Cavuto we trust"
We all would have some "big bucks" instead!
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