Many were expecting an interest rate cut of 0.5% but actually got something better from the Federal Reserve led by chairman Ben Bernanke. The Federal Reserve actually cut the rates in the vicinity of 0 to 0.25% just to avert this crisis and hopefully limit the length or recession that is upon us now.

We have seen the effects of recession. Companies going bankrupt, people losing their jobs and severe budget cuts made by people themselves. We cannot avert the impending crisis but we can manage and manage hard. Extreme sacrifices are sure to be needed as all sectors of the world from business to real estate are experiencing the hard effects of the credit crunch.

“The Federal Reserve will employ all available tools to promote the resumption of sustainable economic growth and to preserve price stability,” the Fed said.

Brace yourselves for the worst economic catastrophe since the 1930s. It is not going to be pretty.

Source

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