The Fed's Decision: Good idea? or Bad idea?

The surprise announcement by the Federal Reserve on Friday to lower the discount rate spurred trading on Wall Street's last day of trading for the week...and it seems the positive sentiment kept going because we have seen mixed closings on Wall Street since.

So that begs the question, was this move by the Fed a good decision?

The obvious answer from an investor would probably be a resounding yes, form an economist maybe something different, from pundits that like the markets to float on their own strength you'd get a resounding no.

I fall into the boat that the Fed had to do something, what exactly, I still don't know, I'm still not sure if this was an overreaction or not by the Fed. What does worry me though is that it will create this false sense of security that when things go wrong, the Fed will be there to save us. Like a guaranteed safety net of sorts.

So here is your chance to chime in, do you agree with the Fed's decision to intervene in the recent wave of troubles we've seen in the U.S.

Curtis Bergh

Labels: Bernanke, Federal Reserve, Paulson, Stock Markets