Today, the big financial news is that the Federal Reserve has joined several other central banks around the world to make a cut of 50 basis points in order to kickstart global liquidity. Naturally, the credit freeze will probably not be solved by this move alone, but there are several other steps being taken by banks around the world, include a rescue plan in Britain (involving the Bank of England buying preferred stock from the biggest banks) and efforts here in the U.S. to free up the commercial paper market.
Economy and the presidential debate
As expected, last night’s presidential debate focused a great deal on the economy. Both candidates, hours before the global rate cut, pointed out that actions taken at this time are only the beginning. Both agree that energy, healthcare and taxes are going to play a big role in how the economy gets back on its feet during the next few years. Of course, they have different ideas of how this will be accomplished.