Interest Rate Cut To Kick-Start Economy

For years now, that strange stimulus-crazed beast, the economy, has been going its own way, increasingly disconnected from the toils and troubles of ordinary Americans.

The economy, for example, has been expanding, at least until now, and growth is supposed to guarantee general well-being. As long as the gross domestic product grows, World Money Watch's Web site assures us, "so will business, jobs and personal income."

But hellooo, we've had brisk growth for the past few years, as the president has tirelessly reminded us, only without those promised increases in personal income, at least not for the poor and the middle class. According to a study just released by the Economic Policy Institute, real wages actually fell last year. Growth, some of the economists are conceding in perplexity, has been "decoupled" from widely shared prosperity. read more

The Breakdown of Wall Street Alchemy

In all cases, it's handy to have some kind of tool that helps you view your consolidated portfolios as a whole. You can do that using tools like "portfolio X-ray" on www.morningstar.com. Fidelity offers a similar facility on its client Web site.

Q: My father has a joint tenant account with me. It is not tax-deferred. We would like to sell some of the stock and invest it in a fairly safe investment that will grow, or at least maintain its value, when compared to inflation. The money is not needed now, but we are holding it for the day it will be needed. Do you have any recommendations for a fairly safe investment that is tax-free and will have a reasonable growth? A.G., by e-mail

A: There are two investments you might consider. One is a mutual fund that invests in relatively short-term tax-free bonds. read more