September 18, 2007 (LPAC)--Federal Reserve Board chairman Ben Bernanke and the Federal Open Market Committee cut the benchmark federal funds rate on overnight inter-bank lending, by a half percentage point from 5.25% to 4.75%, and the discount rate, which the Fed charges banks for direct loans, by a half percentage point from 5.75% to 5.25%. Only a month earlier, on Aug. 17, "Helicopter Ben" had cut the discount rate from 6.25% to 5.75%.

With indecent haste Bernanke acted to inject funds into the banking system. Immediately the idiots from the financial press praised the move as "aggressive," "responsive," and "goods news."

Lyndon LaRouche commented that the only thing stupider than raising interest rates, is lowering interest rates in this financial breakdown. Instead, said LaRouche, freeze worthless paper, and erect a firewall, as he has specified in the Homeowners and Bank Protection Act.