Rate slashes should prevent US keeling over

IT WAS quite a week for financial markets now becoming increasingly obsessed with the threat of US recession.

Fed rate cuts have now pushed the benchmark figure to 2.25% following Tuesday’s cut of 0.75%, with some anticipation that it will go as low as 1% as the Central Bank does all it can to prevent a prolonged recession.

For some, the Fed’s slashing of rates is just a ruse by a cosy club of financiers in America to keep the gravy train flowing for the greedy lenders that caused the credit crunch in the first place. As a result of their actions banks have lost about €150 billion and are likely to lose a further €250bn, probably dragging a few more banks under in the process.