Comments on: Fed Slashes Interest Rates To All-Time Low

Amid Deepening Recession, Central Bank Cuts Key Rate By At Least ¾ Point; Stocks Soar

[rhs648]

Cutting the rate is a foolish move. It does not help the economy as a whole. It does not make consumers feel better. What it does is tell the world we are desperate. It harms conservative investments and even Social Security. It helps insiders secure outrageously low financing and does nothing for the rest of us.
We can only hope the Fed does not do any more damage before the changing of the guard. As it stands they are as delusional about economics as Greenspan.

Posted by kenhamlett

President elect Obama favors stimulating the economy and proposes even bigger bailouts. To expect a different approach with new faces in Congress and the White House will probably dissapoint a lot of people. Unlike recessions in the 1970''s, 1980''s, 1990''s and 2000, we have never seen government scramble so much to spend money. Barbara Pelosi and Obama, and other Democrats want to spend much more to stimulate our economy. All of this will require huge tax increases and huge deficits. Things like universal health care will probably be on the backburner for a long time. Even teachers in many areas will be forgoing pay raises next year.

[rhs648]

Well this has always been their rabbit to pull out of the hat- now that smoke and mirrors trick has been taken out of their act and they can''''t lower interest rates anymore what''''s next? Just give the banks the printing plates why don''''t you? And the negative T Bill rate? Can''''t people see we are just being fleeced one big s c r e w jon by Preisdente Bush on his way out of town?

Posted by jsilver2th

This has nothing to do with President Bush. It began long before Bush. He did not create the housing bubble. If anyone should share blame it is Congress. Congressional members such as Barney Frank and Chris Dodd whose committees oversee regulation of the banking and mortgage industry completely let this country down. And yes they are Democrats who wish to avoid any blame.

[rhs648]

4.5% 30 year fixed would certainly stimulate those that have been honoring their debt obligations and are actually paying their mortgage. A refinance from a higher rate will put a whole lot of money back into the economy. Question is...when will this happen?

Posted by Variant_530

Hi Variant_530 - 4.5% is a rate that I could only dream of when I financed three homes. My first was at 11%, my second was at 9%, and my third was at 7%. Refinancing wasn''t much of an option because mortgage companies required new closing cost money each time you financed. People who don''t jump into the housing market at 4.5% are missing a great opportunity. Of course, it is once again necessary to have good credit and a down payment and hopefully people will avoid interest only and ajustable rate mortgages.

[variant_530]

4.5% 30 year fixed would certainly stimulate those that have been honoring their debt obligations and are actually paying their mortgage. A refinance from a higher rate will put a whole lot of money back into the economy. Question is...when will this happen?

[jsilver2th]

Well this has always been their rabbit to pull out of the hat- now that smoke and mirrors trick has been taken out of their act and they can''t lower interest rates anymore what''s next? Just give the banks the printing plates why don''t you? And the negative T Bill rate? Can''t people see we are just being fleeced one big s c r e w jon by Preisdente Bush on his way out of town?

[alexanderjt]

Hello everyone, does anyone want to know why the world is suffering? The answer to life is equality. There is no need for me to explain since everybody knows everything. Just put the pieces to the puzzle together and we''ll figure it out. Thank You All.

[kenhamlett]

Cutting the rate is a foolish move. It does not help the economy as a whole. It does not make consumers feel better. What it does is tell the world we are desperate. It harms conservative investments and even Social Security. It helps insiders secure outrageously low financing and does nothing for the rest of us.
We can only hope the Fed does not do any more damage before the changing of the guard. As it stands they are as delusional about economics as Greenspan.

[radiob21]

Posted by book54552134
Absolutely correct on the Japanese economy, the US economy could if it had the integrity of its corporations and representives actually create jobs using old technology along with new technology to convert autos from gasoline to natural/propane/methane gas or hydro cells. This is where the US should be investing alternative energy aggressively and it would create jobs here in the US. This situation is from people voting their religion/party for the last 30+ years. Check out the LincVolt at Neil Young site.

[book54552134]

About 15 years ago, the Central Bank of Japan also gradually cut it''s prime rate to zero in an attempt to stave off a developing economic depression.

The end result? A deep & prolonged economic depression lasting through the 90''s & into the new century which the Japanese now refer to as "The Lost Decade."

Even the most conservative of economists admit that this economic down-turn will get much worse before it gets better. The only disagreement is on how deep the downturn will be & how prolonged the downturn will last. The US economy is massive indeed. It has taken a lot of government economic policy abuse to bring it down.

This is the end result of 25 years of Reagan''s Trickle-down Economics Policies. Reagan, Clinton, & Bush II are the Cooledge/Hoover of our time.

[whitemale08]

shut the fed down now!