Federal Reserve Caves On Fighting Inflation

Well with the world financial markets melting down this week, it was only a matter of time until the Fed caved on their stated policy of fighting inflation. They cut the discount rate today by a full 50 basis points. They have done a 180 on this policy and now they are going to try and inflate their way out of this crisis. Good luck with that. This is the problem with Central Banks. They are the ones that created this problem by making money so cheap for for so long. Now they are bailing out all their buddies on Wall Street with this rate cut. This is going to end badly down the road. They have postponed the pain that needs to happen. The best thing they could have done is let the markets work. The bad debt needs to be liquidated and the excesses rung out of the market.