This is very, very bad! Maybe Ron Paul is right about having a gold based currency. Interest rate changes are warranted to smooth the edges of the business cycle, not to bail out a bunch of transparently poor financial decisions made by borrowers and lenders! This is the most socialist, politically motivated, special interest serving thing that I have ever seen the fed do!

In the free market, those that made bad credit decisions must be allowed to pay the price, and only by paying dearly can lessons truly be learned. Borrowers who were unwitting and took on too much debt must learn that there are consequences for their actions. Homebuilders that built too many homes or overpaid for land need to face the consequences. Wall Street firms that provided credit to all of these activities with too much laxity must also pay a price. This is all part of a healthy correction.

Fed Rate Cut!