Russian Markets on “Rollercoaster Ride”
Stock markets around the world continue to fall despite the Bush Administration’s preemptive strike before the New York Exchange opened on Tuesday. The Federal Reserve tried its own version of shock and awe as it cut interest rates a “dramatic” 0.75 percent. The monetary defibrillator worked for a bit. The New York Exchange didn’t dive as much as expected. The Dow shaved off only 1.5 percent of its value. Few however believe that the rate cut will do much to plug Recession’s bullet holes. According to the Financial Times, economists at Davos are unconvinced the monetary shock will “succeed in boosting a sickly US economy.” Stephen Roach of Morgan Stanley called the Bush response “a dangerous and reckless and irresponsible way to run the world economy”. One can’t help note the irony when the free marketeers cry to the State for help in ..read more
