Great Depression?

I just watched the US Federal Reserve Bank (better known as the Fed) hold on to its 2.0% key interest on the news. I’m not sure exactly what that means right now, but I’m pretty certain it’s going to have some drastic effects on not only the American but global economies in the not so distant future. Apparently of all the options that the Fed could have taken this was the one that Economist and Financial Analysts wanted least, as this suggests that the Fed is expecting a slow down in the US economy.

If any of you have been keeping an eye on the American financial markets in the last couple of days; you’ll know that it’s going through a rather rough time. Well that’s a little bit of an understatement, with Investment giants Lehman Brothers declaring bankruptcy yesterday, Merril Lynch being taken over by Bank of America, and fears of AIG going under, things have certainly been better.

Some analysts even fear that economy may be headed for another “Great Depression” like recession. Although I’d like to believe that the markets have matured since those times, with the shake up recently it’s really difficult to say…all I can and will say is that we’re living in some interesting times, and at this point all we can do is observe and hope that the higher powers have some tricks up their sleeves to avert a massive financial crisis. I remain confident…in the mean time I’m going to start putting some cash under my mattress for rainy days, although this may prove to be fruitless if money loses its value.