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The author reflects on the emergency rate cut announced by the U.S. Federal Reserve before the scheduled policy meeting on January 29 and 30, 2008. He believes that several financial collapses may result if specialized companies that insure corporate bonds were to be in default. He asserts that a second rate cut is likely, unless there is immediate improvement in the economy. He argues that a second rate cut would amplify the extraordinary concern of the Federal Reserve over financial markets.