The rush of morning economic news is all about the extraordinary, coordinated rate cut by most of the world central banks. This coordinated 0.5 percent rate cut is a growing indication of a global economy that is comprised of increasingly coupled independent national economies.
The world markets over the last several days have been an eerie forecasting tool for each new market opening. Here is some of the initial coverage as markets seem to react positively:
- Federal Reserve explains in statement announcing coordinated rate cuts (The Fed)
- Coordinated cuts help, but not a cure (WSJ)
- Naked Capitalism wonders if these reduces long-term ammunition (Naked Capitalism)
- Bloomberg coverage of international central bank cuts (Bloomberg)
The true test is will money begin to flow within the inter-institutional credit markets?
About Bill Rice