Fed cuts interest rates by .25%

[manlymatt83]

Right now, just breaking news.

Text

 

[Agentbolt]

Dammit! A goddamn Lunchable is going to cost 20 bucks soon at this rate. A dollar is probably worth 3 yen right about now.

 

[AmpedSilence]

the entire market "gain" for today was just wiped out.... watching it on msn...

 

[Vette73]

Well then watch oil shoot above $100 and the dollar drop even more.

Yea!! my 401k just went up but oh the dollar is worth less then it was beofre... and gas cost more among other things... guess i lose.

.5 was to much before and another .25 will not help.

 

[meltdown75]

haha, Lunchable

 

[SSSnail]

Soooo... what's a good currency that I should request my pay to be based on?

 

[Vette73]

"The Federal Reserve, faced with surging oil prices and a slumping housing market, today cut a key interest rate by a quarter-point"


WTF!!! cutting the rate will ony make oil go up more when the dollar drops :roll:

 

[paulxcook]

For those of us that are less financially savvy, what does a quarter-percent interest rate mean for, say, homeowners, consumers, etc?

 

[AmpedSilence]

geez... the market apperantly didn't like the news... went from +80 to now -22. I looks like a cliff...

 

[SSSnail]

Originally posted by: Marlin1975
"The Federal Reserve, faced with surging oil prices and a slumping housing market, today cut a key interest rate by a quarter-point"


WTF!!! cutting the rate will ony make oil go up more when the dollar drops :roll:

Didn't you know our economy is control by a buncha geniuses? And by geniuses, I meant not really, or totally opposite.

 

[Vette73]

Originally posted by: AmpedSilence
geez... the market apperantly didn't like the news... went from +80 to now -22. I looks like a cliff...

Yep the market usually goes up when rates are cut. I guess you can tell what they think of this cut.

 

[Agentbolt]

what does a quarter-percent interest rate mean for, say, homeowners, consumers, etc

'

It means, among other things, that the dollar is going to tank even further and Core Inflation is going to continue to go through the roof. Which means going grocery shopping is going to be even more painful to the wallet than it currently is.

 

[paulxcook]

Originally posted by: Agentbolt

what does a quarter-percent interest rate mean for, say, homeowners, consumers, etc

'

It means, among other things, that the dollar is going to tank even further and Core Inflation is going to continue to go through the roof. Which means going grocery shopping is going to be even more painful to the wallet than it currently is.

Thanks. Seems like things started sucking more once Greenspan left. I'm sure there's a deeper cause here, like massive national debt, but he seemed better at fending it off.

 

[Miramonti]

Apparently the fed has no reg. for the dollar.

A lot of analysts are very critical of this drop, saying the economy doesn't justify another drop, and that the fed is thinking way to far ahead (preparing to stave off doomsday or something). Apparently they think things with the economy are potentially much worse than current estimates pin it at.

 

[waggy]

I understood the first few times they cut it.

but now it is getting to be silly. seems more damage will/can be caused by this then it can help.

wonder if/when they are going to stop?

 

[Stifko]

Originally posted by: jjsole
Apparently the fed has no reg. for the dollar.

A lot of analysts are very critical of this drop, saying the economy doesn't justify another drop, and that the fed is thinking way to far ahead (preparing to stave off doomsday or something). Apparently they think things with the economy are potentially much worse than current estimates pin it at.

many analysts were very critical of the last fed cut too and cited the same reasons as well as how they just bailed out the bad sub prime mtge deals that were made.

 

[Svnla]

There go my savings accounts. Rates will be lower for the savers like myself.

 

[m1ldslide1]

Does this mean the housing market in my area is going to improve?

 

[AmpedSilence]

Originally posted by: Svnla
There go my savings accounts. Rates will be lower for the savers like myself.

seriously, the fed is encouraging a spending economy. Lower CC rates and lower savings interest rates means more spending. Like we need more debt....

 

[eshtog]

Originally posted by: m1ldslide1
Does this mean the housing market in my area is going to improve?

It will help but, wont bring it out of the slump

 

[Appledrop]

obviously the dollar is being destroyed to make way for the Amero.

 

[Agentbolt]

Dog and cats, living together! Mass Hysteria!!

 

[waggy]

Originally posted by: Agentbolt
Dog and cats, living together! Mass Hysteria!!

NOOOoooooooo!!!

 

[kranky]

They are trying to save the banks who are holding billions of adjustable rate and negative amortization mortgages that people can't afford to pay. With lower rates, people might be able to refi into something they can afford.

Of course, this screws all the people who save, and it screws the dollar internationally, but apparently that's not as important. Gotta love it - when the banks were raking in megabucks pumping out smoke-and-mirrors mortgages and CDOs, that was OK. Now that things have turned the other way, they get a bailout via lowered interest rates instead of letting them take their lumps. Sacrificing the dollar to prop up the lenders and the "housing market" is wrong.

 

[Miramonti]

Originally posted by: m1ldslide1
Does this mean the housing market in my area is going to improve?

It means they are expecting it to get worse and are trying to stave off disaster imo.