Happy New Year - let’s hope 2009 will be better

Sorry for no posting in recent days - it was due to the Christmas holiday period. Anyway, there were no major important events during this time.

I wish all of you Happy New Year, especially to those who really suffered from the crisis in their private lives. Let’s hope 2009 will be the beginning of the recovery.

US interest rates reaching ZERO - can FED do anything else?

FED decided few days ago that the interest rates will be between 0-0.25%. In fact, it means that USA have ZERO interest rates. Now USA are the second big nation with such low rates (the second one is Japan - Japanese have had almost zero interest rates for several years now).

Now FED has done everything possible to fight with the recession. The bad news is - they barely can do anything else. This dramatic and radical action shows how desperate and helpless are american decision-makers. USA have interest rates as low as in Japan - let’s hope they won’t go into Japanese scenario (which would mean several years of recession).

I’m afraid the future can be harmful and it will prove that you can’t fool the rights of the economic science. Billions of dollars are being pumped in the market, interest rates are lowered to zero - and even all that can’t make the avalanche of the crisis to stop. If you allowed the bubble to burst, you can’t just fill it with air again.