12/17 Roundup: Free Money, Dynasty and Nepotism, Suspected Mafiosi

Leader: Free Money!

- Just when we thought the federal funds interest rate couldn't go any lower, the Fed reminds us there is, in fact, a number below one... The new rate will float in a range between 0 and 0.25%. This, in effect, exhausts the Fed's most powerful monetary tool, unless they're going to start paying people to take their money (which actually doesn't seem so implausible anymore).

- This move was more symbolic than anything else; much more importantly, the Fed announced they would not hesitate to print as much new money as they need to loosen up the credit markets.  In normal times, these measures would cause the danger of spiraling inflation, but considering recent deflation (the consumer price index fell a dramatic 1.7% in November, the biggest drop... ever), nobody's too worred about that right now.

- David Leonhardt of the NY Times finds a silver lining in the present deflation-- falling prices could soften the recessionary blow for many families.  

Politics

- Caroline Kennedy has a new ally in her hunt for a senate seat: Harry Reid.  Politico would like to have a conversation about dynasty and nepotism in the Democratic Party. So would Joe Klein, who offers up a few as-yet unheard names of potential star Senators.

- Jesse Jackson, Jr., it turns out, has been an informant against "Crooked" Rod Blagojevich for years now, though not in the current investigation.  He may come out of this scandal looking clean after all. Howard Fineman wonders why the Obama team is looking to bury the report on their dealings with Blago by releasing it Christmas week.

- The Bush administration has generously been preparing memos to the incoming Obama team, offering contingency plans in the event of a global crisis very early in the year.  

- Tom Vilsack will be the next Agriculture Secretary, and Xavier Becerra will not be the next US Trade Representative.

National

- In the latest sign of the demise of print media, the Detroit Free Press and the Detroit News have both decided to stop home delivery of their newspapers. Paper and ink just doesn't sell anymore.

International

- One of Robert Mugabe's chief henchmen was shot, non-fatally, in a nighttime ambush in his home. By all accounts, this was a failed assassination attempt. Was it a political opponent? A supposed political ally? Nobody knows.

- The Italian police arrested nearly a hundred suspected Mafiosi, in a city-wide raid in Palermo yesterday. This was an attempt to prevent the Mafia from regaining control 

One More Thing

- Guess who is Time's Man of the Year? Hint: It's like, duh. 

- Last, Bernard Madoff is very close with the regulators.  I think they'll soon be a whole lot closer: