Tuesday, January 22, 2008

Fed slashes interest rates

Talking about doing the wrong things at the wrong time: The Federal Reserve on Tuesday slashed benchmark U.S. interest rates by a hefty three-quarters of a percentage point in an emergency bid to lend support to a U.S. economy some fear is on the verge of recession.

The Fed's action took the key federal funds rate, which governs overnight lending between banks down to 3.5 percent, its lowest level since September 2005. The Fed also lowered the discount rate it charges on direct loans to banks to 4 percent.

This further strengthens the point of US economy is already in recession, tomorrow we will definitely see the Asia markets dip to new lows.
For those who purchase HSI put warrants today, prepare to cash in tomorrow morning on the gap up.

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