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I'm just curious on everyone's views on today's rate cut. Do you think it was a good or bad move for the economy? I personally think it will help a little with consumer confidence in the short-term and maybe home sales a tiny bit (that's a big maybe) but is not doing us any good in the mid- to long-term with inflationary pressures. I'm especially concerned about the weakness of the dollar. What do you think?
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Of one mind
Quote:
Originally Posted by Anu2
I'm just curious on everyone's views on today's rate cut. Do you think it was a good or bad move for the economy? I personally think it will help a little with consumer confidence in the short-term and maybe home sales a tiny bit (that's a big maybe) but is not doing us any good in the mid- to long-term with inflationary pressures. I'm especially concerned about the weakness of the dollar. What do you think?
You pretty much got the same opinion as I do. And honestly the interest rate cut is not going to help save the housing market. Tighter lending standards will see to that. And I also don't think the average Joe in foreclosure will not be saved either. So it a win only for the Banks and Large Lending Corporations today.
The Feds balancing act says that a recession is more probable than significant inflation, so they reduced interest rates. A good decision, as are practically all Fed moves, in my view.
I agree with the consensus. I think it was purely strategic, to build consumer confidence and convince banks that the Fed has their back. It shouldn't affect mortgage rates all that much, but it's probably bought the economy a little more time to find its footing. But look out below! The dollar's coming right down at ya!
Just bs. All that the Fed really does is pump bs. But as long as the masses truly believe it can all continue.
In practice the interest rates matter far less than to whom and how much money is available -- totally independent of rates. They dumped billions into defunct banks as a bailout -- that made a difference to their buddies in those banks, but did not shift the inflated interest charges to the folks being hammered with ARMs they cannot refinance. No money available for you little peons -- now go be homeless while millions of houses sit vacant.
The interest rate only indicates what relative rate of inflation is going to continue -- sort of a money tax to all the poor chumps who are obliged to honor the Fed's printed dollars.
Their "management" sort of remind of telling my cat what to do. I watch him and tell him -- Sit down. Stand up. Scratch your fleas. All at the time he is doing it. Cat does what he wants, but I can pretend he is following my lead.
I would have loved to see the Fed raise the rate but knew it wouldn't happen. Failing that, I was hoping they would leave it the same. From a personal standpoint, a lowered rate is bad for myself and DH because we have about 75% of our investments in high yield savings accounts (right now we need liquidity because we are going to be relocating within the next 12 months and will be paying cash for whatever house we buy). The lowered rate will result in our savings accounts and any new CDs earning a lower rate as well. Hopefully the Fed won't make rate cuts a habit again.
I understand how the cuts will help those who have or will have to borrow money (we don't, and won't) but for people who rely in interest income the lowered rate is not a good thing.
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Of one mind
