The Fed cut interest rates again, this time by 75 basis points. Any rate cut is always positive, as it brings down the cost of borrowing. However, successive rate cuts over the past year only managed to mitigate the negative effects of the sub-prime meltdown. You can't rely on monetary tools forever. The Fed has to institute structural reforms, such as overhauling and placing effective monitors on mortgage derivative institutions. You are not addressing the real cause of the problem by simply cutting rates while ignoring the gaping cracks on the wall.
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