The Federal Reserve cut a key interest rate today, aiming to prevent turbulence in the housing and credit markets from slowing the U.S. economy...That, Fed policymakers hope, will encourage households to spend money and businesses to invest in the future, despite turmoil in the financial markets, a sour housing market and moribund job growth.
So in a country with a savings rate of 0, we are going to solve our economic woes by spending more. We are to do this despite most other economic indicators suggesting that it might not be such a great idea.
If you will excuse me, I need to take out a couple of car loans.
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