Topcat

FOMC Preview: How Far Will the Fed Go?

Could someone please explain WHY cutting rates now is going to help? The bank preferred stock with painful dividends to be paid to the government should get the banks lending again, so they can buy back the shares asap to avoid the dividend escalation. The banks, etc. have loan rates too high right now for mortgages, etc, with credit too tight and thus constricting business investment and home mortgages. We have to get them lending, so those people who DO want to buy houses now can do so. How does cutting rates help? It just moves down the dollar, right when it is rallying.