Fed cuts federal fund rate .5% (half percent)

[Deeko]

Originally posted by: Special K

Originally posted by: Deeko
Interesting. My rate still dropped this month - so with all the rate cuts since then, chances are, it will drop again next quarter? I'm all for that.

Yeah - mine reset at the beginning of January, April, July, and October. It works for you if rates are dropping, but works against you if rates are rising.

Right. Well, eventually I'm going to consolidate into a fixed rate loan anyway - likely before the end of this year, so it won't affect me then anyway.

 

[aplefka]

Originally posted by: Special K

Originally posted by: aplefka

Originally posted by: AnonymouseUser

Originally posted by: aplefka

Originally posted by: IGBT
..never really helps. devaluates the dollar and increases personal debt that too many can't afford at any rate.

:laugh:

Sorry, I just thought that was one of the coolest made up words ever.

Seriously though, wtf is going on. 1.25% in less than two weeks?

It means the economy is really and truly fucked.

Hopefully they'll stop this rate-cut bullshit soon, and focus on the causes instead of the symptoms.

Without getting too political, I don't get how some people could deny that we have been in a recession for a while.

Don't you need two consecutive quarters of a shrinking GDP to officially be in a recession? Given that the 4th quarter of 2007 still saw positive growth, it seems we would not be able to say the country is in a recession until July at the earliest.

I guess this is true. I guess "weak economy" would have been better and more appropriate phrasing. We've got a lot of stuff that's gonna need fixing, sure would suck to be running for president this term.

 

[Acanthus]

Originally posted by: Special K

Originally posted by: aplefka

Originally posted by: AnonymouseUser

Originally posted by: aplefka

Originally posted by: IGBT
..never really helps. devaluates the dollar and increases personal debt that too many can't afford at any rate.

:laugh:

Sorry, I just thought that was one of the coolest made up words ever.

Seriously though, wtf is going on. 1.25% in less than two weeks?

It means the economy is really and truly fucked.

Hopefully they'll stop this rate-cut bullshit soon, and focus on the causes instead of the symptoms.

Without getting too political, I don't get how some people could deny that we have been in a recession for a while.

Don't you need two consecutive quarters of a shrinking GDP to officially be in a recession? Given that the 4th quarter of 2007 still saw positive growth, it seems we would not be able to say the country is in a recession until July at the earliest.

If your GDP "grows" by 2%, but inflation is 8 or 9% is that positive growth?

Thats where we are headed now.

 

[Special K]

Originally posted by: Deeko

Originally posted by: Special K

Originally posted by: Deeko
Interesting. My rate still dropped this month - so with all the rate cuts since then, chances are, it will drop again next quarter? I'm all for that.

Yeah - mine reset at the beginning of January, April, July, and October. It works for you if rates are dropping, but works against you if rates are rising.

Right. Well, eventually I'm going to consolidate into a fixed rate loan anyway - likely before the end of this year, so it won't affect me then anyway.

Good luck. When I tried to consolidate my private loans, the absolute lowest fixed rate they could give (i.e. for someone who fell into their best credit category) was ~10%.

Needless to say, I didn't take them up on that offer.

 

[Deeko]

According to Citibank, it ranges from 8.5%-13.5% or something like that. I have 4 different private loans - 2 of them are under 10%, 2 of them are over 10%, so it would depend on what rate they ended up giving me. We'll see. I'm not in any financial emergency or anything where I NEED a lower payment, but if I can get a lower rate, obviously I'd like to.

 

[XxPrOdiGyxX]

I don't know that much about the ins and outs of the financial industry...but doesn't all these rate cuts repeat what caused some of our economic downturn to happen in the first place? They are cutting the rates because they are worried about people and business buckling down and not spending. They cut the rates so that more people by homes and so on...but then people end up buying beyond their means and then when the economy normalizes the people figure out they are extending themselves too far and default on their loans. Isn't this what is going to happen? Please correct me if I'm wrong. I just see a repeat of the subprime problems.

 

[evident]

all of us people who try and save money are getting raped right now, while those who are fiscally irresponsible who overspend and carry debts are getting a break... go figure.

 

[LegendKiller]

Originally posted by: XxPrOdiGyxX
I don't know that much about the ins and outs of the financial industry...but doesn't all these rate cuts repeat what caused some of our economic downturn to happen in the first place? They are cutting the rates because they are worried about people and business buckling down and not spending. They cut the rates so that more people by homes and so on...but then people end up buying beyond their means and then when the economy normalizes the people figure out they are extending themselves too far and default on their loans. Isn't this what is going to happen? Please correct me if I'm wrong. I just see a repeat of the subprime problems.

The mortgage rates didn't go down to a huge extent because of the Fed, it was trillions of dollars of capital rushing into a new investment area. The Fed really had no large amount of control over how things were moving in that sector.

 

[zinfamous]

Originally posted by: mjuszczak

Originally posted by: thirtythree
There's an official 2008 stock market thread.

Fed fund rate affects much more than the stock market

how could you possibly know that? you can't even dress yourself without first seeking the counsel of AT.

 

[Deeko]

Originally posted by: evident
all of us people who try and save money are getting raped right now, while those who are fiscally irresponsible who overspend and carry debts are getting a break... go figure.

yea...I totally should have saved up and paid my college outright. Those student loans are so irresponsible!

 

[zinfamous]

Originally posted by: Svnla

Originally posted by: Fritzo

.......Unwoot- Lower savings account interest

LOL, don't feel bad. You are not alone. I am in the same boat. Now it will be hard to find any savings/CD for 4% APY or higher.

I'm glad I have two CDs locked in at 5% and above (with one maturing at the end of this month )

of course, the interest on my ING savings has dropped some 3% over the last 2 months.
:thumbsdown:

 

[SSSnail]

The funny thing with the rate cuts are that CC's are still charging you (the cunsumers the same highway robbing interests while benefiting from the lower rates afforded by the FEDs) and at the same time you're hit with inflation. Yay!

I say someone cut that dude that's keep cutting rates. He's delaying the inevitable to richen only a few.

 

[randomlinh]

Originally posted by: Deeko
According to Citibank, it ranges from 8.5%-13.5% or something like that. I have 4 different private loans - 2 of them are under 10%, 2 of them are over 10%, so it would depend on what rate they ended up giving me. We'll see. I'm not in any financial emergency or anything where I NEED a lower payment, but if I can get a lower rate, obviously I'd like to.

if you figure out who gives you a low fixed rate on consolidating private loans.. do share. I have a few loans with citibank.. and their variable rate was higher than what I'm paying now.. heh. they update the rate quarterly, so it was good for me when the rates went up. but i dunno if these cuts will reflect or not for the next quarter.

 

[Special K]

Originally posted by: SSSnail
The funny thing with the rate cuts are that CC's are still charging you (the cunsumers the same highway robbing interests while benefiting from the lower rates afforded by the FEDs) and at the same time you're hit with inflation. Yay!

I say someone cut that dude that's keep cutting rates. He's delaying the inevitable to richen only a few.

Don't buy things on credit that you can't afford, and then it doesn't matter what rate the CC issuers want to charge.

 

[SSSnail]

Originally posted by: Special K

Originally posted by: SSSnail
The funny thing with the rate cuts are that CC's are still charging you (the cunsumers the same highway robbing interests while benefiting from the lower rates afforded by the FEDs) and at the same time you're hit with inflation. Yay!

I say someone cut that dude that's keep cutting rates. He's delaying the inevitable to richen only a few.

Don't buy things on credit that you can't afford, and then it doesn't matter what rate the CC issuers want to charge.

But this is AMERIKA damn it, everybody suppose to be living beyond their means :|

How dare you go suggest otherwise. Oh, and about the CC's they can just raise your rates to whatever they want for no particular reasons.

 

[Acanthus]

http://en.wikipedia.org/wiki/Stagflation

The second explanation suggests that both stagnation (recession) and inflation can be caused when improperly-implemented government and central bank policies simultaneously hamper economic growth and exacerbate inflation.

(before anyone slams my source, the definition is similar in any macroeconomics book youll see in a university)

In other words - We are in deep doodoo, and the fed/banks are only making it worse.

 

[evident]

Originally posted by: Deeko

Originally posted by: evident
all of us people who try and save money are getting raped right now, while those who are fiscally irresponsible who overspend and carry debts are getting a break... go figure.

yea...I totally should have saved up and paid my college outright. Those student loans are so irresponsible!

bleh, i was talking about savings accts, cds and the such... i didnt mean to sound like a jerk but its frustrating to see interest on my savings plummet

i have student loans too... now that i think of it... is it possible to refinance student loans at cheaper rates now?

 

[jpeyton]

William J. Clinton (Term: 01/1993-01/2001)

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George W. Bush (Term: 01/2001-Current)

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