In the past, this would cheer the financial sector as cheap borrowing means more capital floating around the stock market (equalling higher stock prices and returns) however I judge that this won't be effective in the current situation.

Previously one of the side effects of this type of rate cutting was to cause an increase in speculation, one of the causes of the current economic crisis. Rate cuts meant that financial gamblers could take out huge loans cheaply and play market psychology in order to reap short-term profits for investment companies and large commissions for individual stock brokers.

However these rate cuts will not change the economic situation much. The contradictions that caused the current economic crisis still remain and can't be paved over by cheaper loans. Stocks aren't going to bring returns when everyone's profits are falling and Main Street is cutting expenditure due to personal debt and job losses. We're in a vicious cycle.

Governments will inevitably have to go after the sector of society which is awash with cash, but loathes to pay taxes. Super-rich individuals and companies who look for loopholes to pay less tax than the working and middle class must be penalised. The majority cannot afford to pay for the higher government spending needed to increase demand in the economy, but the personal wealth (siphoned from the rest of society I will add) of the super-rich could do that and so much more.

It will be seen if governments have the political will to tackle the super-wealthy, because if they don't then it will be the misery of us all.