As I noted in my post of Sept. 26th, Wall Street and the political aristocracy are hooked on financial meth. This morning, another heavy dose of meth was delivered, since they are having problems getting and keeping high these days. World-wide, central banks cut their interest rates.
At the moment, the US markets are up a bit, but elsewhere (Europe, Asia), the news isn’t so good.
This action of course made everyone who has actual money in the bank a bit poorer. As the fed lowers its interest rate, banks and money market fund managers follow suit. This penalizes savers, and rewards speculators. Once again, we take from the Main Street ants and give to the Wall Street grasshoppers. This constant finagling of the interest rates is one of the structural supports for Wall Street. The government actively discourages people from keeping their money in the bank (the prudent choice), and gives financial incentives for putting it in the stock market (the speculative gamble).
So it comes to pass that the rich get richer, and everybody else gets poorer.