guidoworld's blog

Let's look at some of the potential reasons and personal benefits for the Federal Reserve to have cut rates by 50 basis points yesterday.

A perusal around the web and even mainstream economic outlets described the Fed as being between a rock and hard place. Article after article talked of how inflation pressures remained while a crashing housing industry was in need of assistance. Almost every article mentioned how desperately Wall Street was looking for a rate cut.

Many mainstream and independent economic journalist are using words like mini-crash and crisis when describing the action of the market over the last three weeks. They rightly point out how some of the hourly rises and falls have been breath taking.

August 1, 2007 on 5:51 pm
by Jim Guido

Four or five years ago I began to wonder how economic globalization would work out. I figured that the long term goal would be for people around the globe to earn similar pay for like work. In order for this to happen either the industrialized west would have to have a sharp decrease in pay or the far east and third world nations would have to enjoy a sharp increase in pay. My initial inclination was that it would be a combination of both, the east would rise while the west’s earning rate would decline. Likewise the middle class of the west would experience a decline in their standard of living while the east’s middle classes standard of living would rise.