January 22nd, 2008

Caricature

Good grief

The Fed has apparently cut US interest rates by 0.75% (from 4.25 to 3.50), the biggest cut in a quarter of a century.

Of course, the first effect of that should be the dollar dropping back again against Sterling.

A second effect should be that US mortgages should be a little easier to repay, and the sub prime bubble burst may be a bit less explosive.