Portfolio manager Axel Merk tells Associated Press that an interest rate cut does not help those who need access to credit.
"The market is also nervous that a quarter-point or half-point reduction in the target fed funds rate may not help the credit and housing markets. It's not the price of borrowing that's deterring investors, many say; demand has waned because of worries about the quality of the underlying assets. [...]
'Providing the superficial image of stability when everybody realizes things aren't normal just doesn't work,' said Axel Merk, manager of the Merk Hard Currency Fund."