European Markets: Desperately Seeking Rate Cuts

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They likely will cut. But, REMEMBER, the current mess in part was caused by rates too low too long---led by America after 9/11.

Interest rates to bank depositors must compensate for both inflation and risk. Interest costs for borrowers must include both of those things for the depositors PLUS a profit for the bank. Anything lower is done by only by funny money schemes and results in boom/bust.

of 1:57PM October 07, 2008

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New Money

Katy Marquardt, a senior editor at U.S.News & World Report, takes a contemporary look at happenings in the financial world and aims to help young investors get going with their portfolios--or just sound cool at cocktail parties. Have a question? E-mail Katy at newmoney@usnews.com

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