[Alberta's Child]

I don't see this as an ideal scenario, but there's no doubt this rate cut will help. What's happening here is that they're trying to ward off a complete collapse in the housing market and massive defaults on mortgages by lowering rates to the point where people can renew or refinance their mortgages at low long-term fixed rates.

It's not perfect, but it may be the only thing that works here.

I'm actually sitting quite pretty here because: (a) I don't have a mortgage, and (b) I carry a commercial loan that is tied to the prime rate and will probably reach its contract MINIMUM soon (i.e., it can't go any lower -- and it's already ridiculously low for a commercial loan -- no matter how much lower rates go).

[Timeout]

Good analysis. I think it’s also very likely foreign central banks will follow this move. They don’t want a weaker dollar.

I think there’s still time to get ahead of this “panic”. If I were a trader, I’d be buying.

[ConservativeMind]

I think this is only for the overnight lending rate between banks, not the prime interest rate.

[mad_as_he$$]

Nice.