Tuesday, August 21, 2007

Should the Feds save Wall Street?

I wrote earlier about my thoughts regarding the recent drop in Wall Street. But there's been a lot of calls right now for the Feds to cut rates further and help the market from the credit crunch. But should they do it? Short answer: Yes.

Long answer: Some have asked, should the Feds reward the speculators who did this in the first place? By giving them a lifeline, they might just do it all over again. While punishing a small group of financial companies would be fair right now, we need to recognize that there is an overall effect of this fallout that's hurting the innocent.

The Feds must utilize their monetary policies and powers to protect the livelihoods and the economy of the American people, the majority of which had nothing to do with the speculative lending but are now affected by it.

Or the Fed could just say, life isn't fair. Tough.

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