My Dairy 445 --- Global Coordinated Rate Cuts

Quick Thoughts: Global Coordinated Rate Cuts ---The Last Bullet

October 8, 2008

Finally, we are stand united…..

ü PBOC cuts interest rate 27bps and RRR 50bps

ü Fed cuts 50bp to 1.50%

ü ECB cuts 50bp to 3.75%

ü SNB cuts 50bp to 2.50% (mid point of target)

ü BoE cuts 50bp to 4.50%

ü BoC cuts 50 bp to 2.50%

ü Riksbank cut 50bo to 4.25%

But my question is whether we can climb out of hell tomorrow? Especially if this move proves that they already waited too long to cut rates and markets reject the initial enthusiasm later? If this is the case then what is anything else we can do…the global coordinated rate cur is the last bullet we have…Please remind ourselves, the LIBOR is stubbornly high at this moment ( See attachment)

Fed, ECB, Central Banks Lower Rates in Coordinated Reduction
2008-10-08 11:04:30.480 GMT

By Scott Lanman
     Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.
     The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement.
     ``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''