Rate Day ! Help for Puna Housing?

[JerryCarr]

The half-point drops in the funds rate and the discount rate have been enacted. While this is welcome news for stock investors and people trying to sell homes, some economists question the wisdom of "caving in" to demands to prop up equity values and try to undo poor choices made by mortgagees. On the other hand, heading off a recession is probably the "prime directive" of the Fed. It will be interesting to see how it plays out. As a stock investor, I stand to gain from a rise in the market, but I wonder if we were really headed for a recession. The economy can't be turned on a dime, so I think Bernanke and the Fed are doing the best they can to anticipate trends.

Cheers,
Jerry