Fed Cuts to 1%

In its ongoing effort to reinvigorate the economy, the Fed cut the overnight rate by 50 basis points to 1% today. Liquidity measures so far have done little to reverse the deflationary course for houses, stocks, commodities, and foreign currencies, though arguably it might be slowing the process down. Still, the Fed would be remiss not to exhaust its options, and so we fast approach the "tyranny of zero."