On Tuesday, the Federal Reserve cut interest rates by 0.5%
. Wall Street aggressively demanded the cut
to stop the sub-prime mortgage contagion
from triggering a credit crisis among large US and foreign investment banks and the collapse of their over-leveraged hedge funds
, which ultimately threatened to drag the US economy into recession. The market rallied this week in response to the Fed's move. But there is no free lunch. [more inside]
Halliburton Moves Corporate Headquarters to Dubai, UAE.
Oil services giant Halliburton, parent company of soon to be spun off KBR, and recipient of many no-bid government contracts, is moving its corporate headquarters to Dubai in the United Arab Emirates. Meanwhile, the US and the UAE are working on a free trade agreement
. The UAE and China are the two largest exporters to Iran
, and some speculate that the purpose of the move is to open up Iran as a legitimate market for Halliburton,
because as a US firm its acknowledged trade with Iran
is of questionable legality. Among the implications of this corporate move is that the US military will now be heavily dependent on a contractor that is a foreign company.