A drop of half a point..
It's almost as though we're sliding into a Keynseian nightmare.. spend that much, that those who carry your paper can't afford to let you go broke, because your debt represents a substantial percentage of their equity..
Now we appear to have put a plug in the run on Northern Rock over here.. in fact, the building society's stock went up by about £3 briefly at the opening, for some short-term profit taking..
In fact, despite the knock-on effect seen at a couple of other 'savings-and-loans'.. the assurances extended by the Exchequer yesterday has shortened the queues considerably..
But, it must be said, there are those who demonstrate an attitude that will no doubt be taken into account, when the campaigning for the next election begins in earnest..
There are those who will still remove their cash from Northern Rock and those others of it's ilk, for the simple reason they don't trust the government.. don't understand how the government could have allowed such a situation to develop in Britain in the first place..
Why, when the euphamistic 'crunch' hit the American economy like a brick through a window, wasn't the Bank of England preparing for a ripple effect..?
And, it's not been that long since Gordon moved into No.10, that the man on the street still doesn't think of him as 'The Chancellor'.. doesn't realise that what Alister has to face today, is a situation which developed under the nose of Gordon himself..
But back to the US..
The Fed decision was in response to the spreading impact of credit market problems on the rest of the economy..
It said "the tightening of credit conditions has the potential to intensify the housing (market) correction and to restrain economic growth more generally".
Odd. Americans are not generally known for understatement.
But is the answer, to allow re-financing of foreclosed properties to yet more, who, while among the working class, may not have any flexibility when the inevidable effects of the slowing of the war economy really hits home..
Are there enough buyers out there, who could afford to absorb another $50 to $150 per month to their mortgage payments..?
It's certainly going to lead to a devaluation of American real estate .. should be some bargains out there for those who can afford sizeable downpayments..
How deep is George willing to dig into the government's pockets, to make his last year or so affect domestic problems..?
Same might be wondered about Gordon..

Another blow to the British livestock farmers.. Yet another case of foot-and-mouth has been reported, which will delay the movement of all livestock for weeks..
This is an economic disaster of some consiquence on this island..
The downstream effects will be devastating..

One more brief note of interest..
The French and Russian Foreign Ministers are having meetings.. and there has been 'some concern' expressed by Moscow, at the French declaration that if Iran doesn't cease it's uranium enrichment programs, the world should prepare for any eventuality, including war..
Translation: If France came to the UN Security Council with a proposal to begin hostilities with Iran on the nuclear issue.. Russia would certainly invoke it's power of veto.
Now this puts France in much the same position as the US, when the result was pre-emtive action by the Americans against Saddam..
The world.. especially France.. condemned that..
So.
While the clear objective of the new French President Nicholas Sarkovski is to ingratiate himself with the US.. to repair what have been since the days of De Gaulle been at best, frosty relations.. he may have put himself center of the world stage, making statements which must be given a positive response from the White House..
Might be a good time for Nicholas to be planning a State Visit, to Washington.. perhaps discuss what arrangements could be made between the US and the EU, what with increased American military presence in Poland and Slovakia.. and Vlad making it somewhat plain that after all, it's still Russia they're dealing with..
Still a force to be taken into consideration, outside the United States of Eur.. err..the EU..