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If The Economy Was Doing So Great Why is The Federal Reserve Cutting Interest Rates?

I can’t even count how many times I have heard over last year “the economy is doing great” come out of the mouths of politicians and Wall Street talking heads.

President Bush in his State Of the Union address stressed again how resilient this economy is and how strong the economy is. Yet he has proposed a stimulus packaged that he urged congress to pass ASAP.

Last week the Federal Reserve initiated an intra-meeting EMERGENCY rate cut by .75 basis points, the largest percentage cut in over 20 years. And they are being pressured to cut the interest rates by another .50 basis points tomorrow.

These actions are not the actions of a strong, vibrant, and resilient economy. In fact these are the actions when an economy is in trouble, serious trouble. Historically, when the fed is cutting rates it is because the economy is in a slowing or a bearish movement.

And you only Beg, that’s right I said BEG the American people to spend is when you are admitting that the retailers are in big trouble.

The truth is the economy is in serious trouble and has been in trouble for quite some time. All of the attempts over the last few years have been putting off what some have termed ‘the day of reckoning’.

According to all of the statistics and reports America is already in recession and heading towards a severe recession. My recommendation is to not fall victim to all of the rhetoric coming out of the Government and Wall Street. Do not let them convince you that what you are seeing and experiencing is not real.

Your future and the future of your family depend on you being Aware, Educated, and Proactive.