Yesterday the U.S. Federal Reserve Board, The Bank of England and the European Central Bank all lowered their key interest rates by a half point. This is the first time since September 11, 2001, that the major Western central banks have taken this kind of coordinated action. Like all rate cuts, this one cuts both ways, both reassuring the financial community that extraordinary action is being taken, and scaring the hell out of everyone that extraordinary action is considered necessary. Investors, both individual and professional, like to think of themselves as cool and rational, but they’re soothed by helpful...
