Dow Plunges

When things like this happen, it really is the economy, stupid.

The Federal Reserve cut a key U.S. interest rate by three-quarters of a percentage point this morning as a global stock sell-off continued on Wall Street today, with the Dow Jones industrial average dropping more than 400 points in its opening minutes. The surprise rate cut, made via an emergency videoconference last night, responds to a growing sense of crisis in world financial markets, which have been buffeted by problems that began in the U.S. mortgage markets but have now spread well beyond it. It is the largest single rate cut since 1984, beyond even the initial half-point reduction that the Fed made following the Sept. 11, 2001, terrorist attacks. … .. Fed Cuts Key Interest Rate as Global Markets Drop for Second Day Sell-Offs on All Major Exchanges

It makes choices for the upcoming primaries more focused on competency. It
gives Mitt Romney a boost because of his business prowess, but he’s still in
trouble because he’s tried to be all things to all people. Jack Kemp joining
John McCain helps him, but with terrorism and the war in second now, it will
be more difficult for McCain, though I still think he’ll be the nominee. As
for the Democrats, Clinton mentioned it last night, but it really is true that
what happened before her husband came into power in the 1990s is going to be
on some people’s minds. Obama offers a lot of hope, but he’s short on specifics.
As we head towards February 5th, with all of those states slated, people will be looking for someone who they think can actually manage the
economic crisis, not just hope that he can. This wouldn’t be so true if Clinton didn’t offer details. Her wonkery comes in handy when the financial markets are in chaos, and people are getting nervous. Remembering the financial strength of Bill Clinton’s presidency won’t hurt either.

Oh, and to be clear, we haven’t found the bottom yet.