Wish I could split this off to a separate thread...
- Don't know what the PATRIOT act has to do with what we've got right now. Yeah, it's a badly-written, miserably enforced piece of shit legislation, but that's got nothing to do with the present financial problems.
- My dad, brother, and I are having quite a go of debating what's going on with the markets vs. the larger economy. By most metrics, the stock markets aren't particularly overvalued, and except for housing, the economy is generally strong. Large businesses are growing at healthy (but not overheated) rates, durable goods and capital expenditures are reasonable, and unemployment (this thread notwithstanding) isn't very high either. But at the same time, you've got an insane amount of commercial paper out there that nobody really knows the true value of (and needless to say, 100 cents on the dollar is head-in-the-sand optimistic), more loans will be resetting to higher rates in the next two years, and there's really no guarantee that when homeownerwannabe's start getting foreclosed on, that they won't take the rest of the economy with them.
I'm still not especially pleased with world central banks dumping massive amounts of cash into the system (it reeks of spring 1929 to me, when the mega-rich of the time tried to bail themselves out), and this discount rate cut even less (it gives the head-in-the-sand crowd an excuse to go back to partying without fundamentals), but it's probably the only choice they had. Cutting the funds rate means inflation, and without economic growth to match, we may as well live the 1970s all over again.