Worldwide cuts in the Rate were supposed to save us from our second crisis of the year. The mortgage crisis was the cause of the lending crisis, but nonetheless, this is what REALLY shook up the American problems into something that went worldwide. A global initiative cut rates by 50 basis points in about 8 countries, but remember, this isn't to encourage consumers to spend. It is really to encourage banks to borrow and provide lending liquidity. Inflation is still around and we are deeply in a recession.
This, folks, is the dreaded stagflation.
It DOES matter that the vast majority of American's won't realize whats going on. But who cares right? If you don't understand it now, your children will explain this entire crisis starting from the 1980's through now to you when they take ECON and HIST courses in the future.
In the meantime, we(average Joe's) will all whine and moan about our shriveling nest eggs saying "This is ridiculous." just about every other line in our highly intellectual and researched soliloquies on the current state of the economy.
