Enormous consequences would be there on Wall Street because Wall Street was giving companies very high share prices based on expectations that they will continue to grow very rapidly and when they grow less rapidly, they get punished by Wall Street investors. Next mania will not start in the next couple of years. This will be a year of defensive postures. VC's, Wall Street, average investor, average IT director are all uncertain on American economy. Nobody knows whether this will this get much worse or level off.
Nobody wants to make crazy investments anymore.
Some economists feel 2-3 cuts in row can rejuvenate the market. Only thing which everyone unanimously agrees is that cut has been made just before regular meeting of entire federal reserve board means that he is worried. It certainly prevents situation from getting drastically worse. He may have slowed down whatever decline was involved. There is ongoing debate out here on how slowdown or recession in the US would affect the prospects of Indian software companies.