at least for now that is a minor benefit. The problem is so great that most do not understand it. The dollar is not going to be weak, it is going to crash. CRASH without any doubt. The fed is going to shit bricks this weekend when they realize that this rate cut did not help much. The crashing buck will force foreigners not to buy our bonds and stocks. Hence, gold goes vertical, dow crashes, r.e. crashes. Interst rates actually will rocket to 20 percent.
I disagree.Interest rates are far more likely to go to zero.The Fed will just drop money from their Hellofacopter.The banks will just tighten lending even more when all their loans go bad so low interest rates won't kill them more.They will only lend to people who have 3 times more cash than they are borrowing or similar in assets to pledge.Look at Japan since 1990 and USA in the 1930's.History repeats.I agree interst rates will sky rocket for bad credit risks but they won't get the money they need in full.Just a small whiff.
knife I agree in the very short term. You must undersand it will be out of the Fed's control. It will be the bond market collapsing that forces the rates to skyrocket ala 1970's. This is a vicous circle that will only end poorly for the economy and dollar.