For whom the Federal Reserve cut interest rates.

<P> Subprime crisis is still in torment over the world. .Since last February, Wall Street and the world-renowned financial institutions involved one, and the loss of one greater than the hole. .In this case, global stock markets continued to slump. .Strikingly, as the leader of the U.S. Federal Reserve central bank, the name of rescue banner again early yesterday morning by 50 basis points rate cut has now accumulated 225 basis points cut the benchmark interest rate to 3%. .</ P> <P>: http://finance. Subprime mortgage crisis, the final analysis, the bitter fruit of the Banking brewed. .Wall Street bankers greed of the mortgage in order to obtain a higher interest to those interested in low-income, poor credit, the original home buyers can not get loans to lend. .Worse still, the commercial banks to transfer risk, such loans will be cut, packaged, asset securitization, turning it into derivative products and sold to banks around the world, insurance companies and pension funds. .Unfortunately, the risks and benefits has always been twin brothers. .When low-income home buyers repayment difficulties arise when the first domino piece also came crashing down, the chain began to be affected. .</ P> <P> Next, the Fed scrambling to inject capital, and is substantially cut. .The move further aggravated excess liquidity, to fund more expensive on the market, but also against the principle of fairness. .Back in charge of the Federal Reserve Alan Greenspan, the stock market crash in 1987, hedge fund Long Term Capital in 1998 and 2001 bankruptcy, "9.11" and a crisis lowered interest rates to rescue the market through various means, to maintain financial stability, .stimulate economic development. .However, the interest is the price of capital, when a crisis to take the initiative to cut interest rates, of course, makes the body get rid of the burden of deep crisis, get out as soon as possible, but also formed an expectation of Wall Street: crisis came, the Fed will inevitably turn on the water .save lives. .This is the so-called "Greenspan put option." .</ P> <P> under this expected, bankers dared to defy the law, creating hundreds of billions of dollars in subordinated debt. .Became public, the Wall Street analysts also stated categorically that "the Federal Reserve did not dare to let the market down." .Result, current Fed Chairman Ben Bernanke obediently into submission, multiple rate cuts. .</ P> <P> As the famous economist, said Xu Xiaonian, government subsidies to cut interest rates equivalent to the subprime debtors and investors to save the real estate bubble. .But interest rate cuts to bring the liquidity to further proliferation of depreciation of the dollar and soaring oil prices, inflation around the world continue to languish. .I can not help feeling that in the beginning of the real estate bubble, the Wall Street financial institutions cashing in full, the profits are put into the pockets of bankers. .When the gang engage in subprime mortgage bankers deceiving, and ultimately became public when the Fed's rate cut has been "comfort." .People who do wrong do not swallow the bitter fruit of self, yet they all bear the consequences together, this is the logic? .</ P> <P> "Infernal Affairs" in the lines saying: Chu Laihun, sooner or later have to repay. .Bernanke's rate cuts, once again the market practitioners to strengthen the government's "rescue the market expects," also contributed to the speculative tide. .Financial institutions, the pain is forgotten, there is no guarantee will come up with the second, third "sub-debt." .At that time, the ultimate damage will be the world. .</ P>.