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Pale Rider
01-22-2008, 08:15 PM
US Moves to Avert Economic Meltdown



2008-01-22 18:19:26
By TERENCE HUNT AP White House Correspondent

WASHINGTON (AP) — Jolted by global recession fears, the Federal Reserve slashed interest rates Tuesday, and President Bush and leaders of Congress joined in a rare show of cooperation in promising urgent action to pump up the economy with upwards of $150 billion in tax cuts and government spending.

Market meltdowns overnight around the globe and growing anxiety at home stirred lawmakers and the administration toward swift action, possibly within a few weeks. Wall Street plummeted as the day began, following Asian stocks, then warily eased its sell-off after the Fed ordered the biggest cut on record in a key interest rate. The Dow Jones industrials, down 465 points at one point, closed the day off 128.

The Fed, announcing its action after an emergency video conference Monday night, indicated further rate reductions were likely, aimed at encouraging people and companies to start spending again.

Read the rest of the story here... (http://charter.net/news/news_reader.php?storyid=14337947&feedid=13)

manu1959
01-22-2008, 09:19 PM
if the US economy is so weak .... how can such a weak country simply cut lending by 3/4 of a point and calm the worlds economy ....

and this article says it all really...

http://news.bbc.co.uk/2/hi/business/7203762.stm

snip....

The United States was going through a downturn, but would not suffer a recession, predicted Mr DiPiazza - at least not in the technical sense of the word, where a recession is defined as two consecutive quarters during which the economy shrinks.

snip.....

"I don't see the emerging economies talking themselves into a recession," says Mr Clarke.