Newswise — The Federal Reserve slashed two key interest rates by three-quarters of a percentage point Tuesday " the largest single reduction in 24 years " hoping to stimulate the economy and avert a recession.
But many fear impending doom in markets around the globe caused by the U.S.' weakening economy, slumping markets and a housing market in turmoil.
Two Texas Tech University experts can discuss the macroeconomics in play and shrewd financial planning in times of economic downturn.
Peter Summers, an assistant professor of economics at Texas Tech University, can discuss what has caused the recent economic woes. From the slumping housing market to sub-prime mortgages with killer adjustable rates, the impending recession and how the U.S. economy influences the global market, he can shed light on how some of these complex economic issues at hand fit into the past, present and future macroeconomic picture.
Bill Gustafson, a personal financial planner and director of Texas Tech University's Center for Financial Responsibility, can discuss strategies to brace for the possible crunch in the everyday American's checkbook. Also, he advises that investors with properly diversified retirement portfolios should not panic and begin selling or chasing some hot fund or stock that is in a sector that performs well during recessionary periods.
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