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Thursday, January 8, 2009

BOE cut's rate..Stock's rally!

The Bank of England cut rates again today and stocks have rallied today on the news.
http://uk.reuters.com/article/marketsNewsUS/idUKL843645920090108

Interbank lending has also gotten a little easier as well as Reuters has mentioned.

What does this have to do with the stimulus plan in the pre-budget of last year?
Will this affect the economy in a negative way?

I saw no purpose in cutting the rates this time, in any event. However, stocks have rallied in the midst of the cut.

But, stocks, have less to do with the real economy than does actual tax cuts and tax credits, as the pre-budget laid out.

I guess if there must be a stimulus, you can't leave out corporate UK.
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