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Fed should cut rates to 1 percent: Pimco’s Gross October 7, 2008 | Leave a Comment LONDON (Reuters) - Influential investor Bill Gross called on Tuesday for the Federal Reserve to cut interest rates to 1 percent from the current 2 percent because of sharp falls in asset prices globally.

The world sticks with the U.S. Economic news - CNNMoney.com Tue, 09/23/2008 - 12:13 The so-called "flight to quality" in the U.S. Treasury market appears to be over for now - bond prices are down and yields are up from lows touched last week.

U.S. SUMMARY: Shares bounce back; dollar gains Index Change Percent change *DJIA 11019.69 +410.03 +3.86 *Nasdaq 2199.10 +100.25 +4.78 *S&P 500 1206.51 +186.88 +1.57 Nymex crude $97.88 +72 cents 10 yr US treasury 3.53 percent *Thursday’s close STOCKS: Wall Street rallied in a stunning

Leighton Holdings Ltd, Australia’s top engineering contractor, has priced a bond issue of US$280 million in the U.S. traditional private placement market, two market sources said. The offer consisted of five-, seven- and 10-year notes, all with a margin of 400 basis points over U.S. Treasuries.

Despite the chaos on Wall Street, the Fed yesterday left its benchmark interest rate on hold at 2%. Martin Hutchinson says the Fed has finally starting doing its job: putting price stability over Wall Street's demands. Real interest rates are negative. This is feeding inflation.

As of this finishing of this article the Dow Jones is closed at 504 or 4.4% down. Most of you don’t remember the day in the 80’s when it dropped 600+ points in an afternoon based on an index of 3,000 or less. We survived and prospered thereafter. This sounds like a huge drop but is a relatively minor dip if taken in historical perspective.

As of this finishing of this article the Dow Jones is closed at 504 or 4.4% down. Most of you don’t remember the day in the 80’s when it dropped 600+ points in an afternoon based on an index of 3,000 or less. We survived and prospered thereafter. This sounds like a huge drop but is a relatively minor dip if taken in historical perspective.

AP - Stocks plummeted and Treasury bond prices soared Monday as investors reacted to a stunning reshaping of the landscape of Wall Street that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

AP - U.S. stocks headed for a sharply lower open and Treasury bond prices soared Monday as investors reacted to a stunning reshaping of the landscape of Wall Street. A series of events took out two storied names Sunday: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.

Image via Wikipedia Take a look closely at the U.S. paper currency in your wallet or purse, and you’ll notice that at the top of each bill are the words “Federal Reserve Note”. What is the Federal Reserve? Most Americans cannot answer that question.