Fed cuts discount rate by 50 basis points

In reaction to the current liquidity crisis, the Federal Reserve has cut the discount rate, the interest rate that the Fed charges to make direct loans to banks, to 5.75 percent, down from 6.25 percent. The target for the Federal Funds rate remains unchanged at 5.25%.

In a statement explaining the board's action, Federal Reserve Chairman Ben Bernanke and his colleagues said that while incoming data suggest the economy is continuing to expand at a moderate pace, "the downside risks to growth have increased appreciably."

Today might be a good day to measure investor optimism by the reaction to this. If the market is strongly up today on this news, that's potentially an indication that investors believe that the recent market corrections represent an overreaction and a buying opportunity. If the market is sharply down, that might tell us that skittishness is overwhelming the urge to capitalize on an opportunity.

Stay tuned.

Thursday Evening Storm

Big McKenzie Lake, near Spooner WI, Date Unknown.

The mainstream media - letting us know exactly who they are.

There has been quite a bit of outrage on the right about a question asked by CBS White House correspondent Bill Plante as Bush and Rove were leaving the podium. Plante apparently shouted "If he's so smart, how come you lost Congress?". Snarky, huh?

I think people have a right to be offended by this. There's been a vibrant debate about whether a reporter needs to be respectful of a President or not. That's great, but the truly remarkable thing is that Mr. Plante has done the public a huge favor.

He has let us know who he is, and which way he leans.

So now, anyone who suspects he's offering biased reporting will be able to quickly confirm it. He's at least given us clear behavioral evidence that he is rooting against the current administration. Now, those so inclined can easily take criticism of the President from him with a grain of salt going forward.

Kyle Busch will drive the 18 car for Joe Gibbs Racing

As a diehard Bobby Labonte fan, the 18 car is very special to me. And now, Kyle Busch will drive it.

Report: Dennis Hastert to retire

Denny has scheduled a press conference in Kendall County for Friday.

Sentinel Money Market Halts Redemptions

The market is selling strongly following the news that Sentinel has halted withdrawals from a money market fund.

New York Times editorial: "The United States cannot walk away"

Usually, when the New York Times editorial page prints something I agree with, I'll do a teaser here, and make you click through to see who wrote the article. Not this time, though.

That's because I want it in the title. I want everyone to know that even the New York Times understands that abandoning Iraq would be suicide for the West, and the the US is the only one that can prevent that.

My friends over at NewsBusters are predicting that as the Democrats, and the press, warm up to this new conventional wisdom, that we'll hear a lot of "I always said..." and "I've always believed..." related to the continued effort in Iraq, and that the press will give the Democrats a pass on the flip-flop. I agree with this, and it's their job to focus on that.

However, as someone who's quite fond of Western civilization, I am very happy about a couple of things that seem to come from this.

For many months, those of us with our head on straight have been asking those who would quit on Iraq what they thought would happen to Iraq after we left. They didn't really answer, because the truth is ugly and nasty, and conjures images that deeply offend liberal sensibilities... genocide, civil war, ethnic oppression, aggression by neighbors, and the potential for an Al Qaeda stronghold in an advanced, educated Middle Eastern society that has had chemical weapons, biological weapons, and a nuclear program that was ready to go.

So, instead of answering the question, they changed their position. They put their own emotions aside, and saw reality, and they are starting to recognize the job that lies ahead of us.

It's also interesting that the press - and the Democrats - don't seem to think that giving up and going home is the key to winning elections.

This is good news.