The Emergency Fed Rate Cut

Before the market opened today the Feds announced a .75% drop in the Fed Funds Rate and the Discount Rate.

If you are keeping score at home, here's what your scorecard should look like:

• Fed Funds Rate: 3.5%
• Discount Rate: 4%
• Prime Rate: 6.5%

Your Home Equity Line of Credit just dropped from 7.25% to 6.5%

This was the first time they dropped by that much since 1984.

Here's their Official Statement: LINK

They cited as a key factor,

"weakening of the economic outlook and increasing downside risks to growth"

and then pointed the flying fickled finger of fate at

"incoming information indicates a deepening of the housing contraction as well as some softening in labor markets"

The markets are set to open much lower today. Don't forget, the Feds are meeting again next week. And many are still expecting further cuts!

I've said this before - We're in for a wild ride. Fasten your seatbelts!