Wednesday, October 8, 2008

This is what should have been done in the first place

At long last, the major central banks in the world -- including for Canada, the US and the Eurozone -- finally got their act together and cut the rate banks charge each other by a half percent. This is the first time ever they've acted in unison on loosening up credit supplies. In the case of the European Central Bank, down to 3¾%, it's the first rate cut in 5 years -- and they are finally saying they're willing to let loose more Euros on the market if that will help calm things down.

The US overnight rate is down to 1½%, while here in Canada the overnight rate is now 2½%.

The markets have girated a bit all day, but as I write these words they are on an uptick for the first time in a couple of weeks. Hopefully the slide has come to an end for now. Still, troubled times lay ahead; and with a view to the elections in Canada and the US, one certainly has to consider that lettting things get out of hand for this long before acting does not reflect well on the executive branch even if the central banks are independent. After all, who appointed the present central bankers? The current administrations, naturally.

Voters should remember that when they go to the polls.

Vote for this post at Progressive Bloggers.

No comments: