Fed cuts discount rate

so WTF is a discount rate? Banks borrow from the "window" for overnight funds, next day funds, or a seasonal withdrawl. All are secured. Affect you? I doubt it. The banks want to raise rates and this "cut" gives them cheaper money. Under the primary credit program, loans are extended for a very short term (usually overnight) to depository institutions in generally sound financial condition. Depository institutions that are not eligible for primary credit may apply for secondary credit to meet short-term liquidity needs or to resolve severe financial difficulties. Seasonal credit is extended to relatively small depository institutions that have recurring intra-year fluctuations in funding needs, such as banks in agricultural or seasonal resort communities. Discount rate is not cosmetic but it's a systemic thing, only banks will feel this and this cut was made to benefit them. I'd look for another 1/2 point before the opening on Monday. The hot babe above left? Hot babes never have a discount rate because they don't have an overnight perspective. Well....some do, but not her.