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yes, i believe they should be lowered, along with taxes, capital gains, etc, this will spawn more business re-investment and growth, and that leads to more jobs.
Location: Charlotte,NC, US, North America, Earth, Alpha Quadrant,Milky Way Galaxy
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Quote:
Originally Posted by MoMark
If they lower rates, they cause the U.S. dollar to fall because the economic situation in the USA is so dire and the debt so huge, national debt and business and individual debt. It will end up costing us more to borrow money to service the debt and pay for oil, etc. if the dollar goes down, which means we only postpone the day of reckoning. Conversely, by raising the interest rates, the Feds slow borrowing, which needs to happen to begin chipping at the massive debts and raise savings, but that also crashes the housing market and stalls the economy. One has to look at both sides and realize....either way, we're screwed and the economy will crash regardless of what the Feds do at this point in my humble opinion. It's too rotted now for the Feds to really manage either way. Thank you Mr. Greenspan.
Wow....darned if you do, and darned if you don't
I don't think they should raise it. The short answer is that it would accelerate inflation.
If every person out there in the workforce opened a , never never gonna use or touch this money account & put 1% to 5% of there wages there every week n let it compound , watch things get better slowly in every area of day to day living. You could look at it as a extra ( 401k plan ) that you control.
When a rainy day comes along use the rainy day account not the never never account. Only use it if its a must & try to repay it back into your account ASAP.
If you never use it & you have been doing it say for 40 years or so you would end up with hundreds of thousands of dollars when you retire.
Sometime back i read something about it , if you were to do the 5% or a little more , the numbers were like over a million if you never touched it & that was just a regular no fancy savings bank account.
That would keep rates very low & steady.
Many countries around the world have this problem too. A LACK of SAVINGS is the cause of it. my 5 cents worth from downunder.
No way. I personally am hoping the housing market will crash, as my husband and I plan to buy in the next 18 - 24 months!
Hahah same here. It looks like the housing bubble is literally balancing on what the fed decides to do. If they raise interest rates all these people with ARM and sub prime mortgages will get foreclosed on resulting in a large supply of homes to the market.
In your opinion, should the feds lower the interest rate?
Why or why not? I say they should in order to prevent a recession and to slow down the deflating house bubble that could take down the economy!
More impactful than the fed rate on our current economy is the outsourcing of american white collar jobs. If corporations were taxed/penalized for each US job they sent overseas I suspect not only would the taxpayers have more money, but so would our government (from the taxpayers AND the corporations). Additionally if we placed trade tarriffs on everything shipped to the US from other countries I think we could even moreso encourage US-based corporations to keep things in house while leveling the playing field by removing the cost advantages enjoyed by foreign exporters today. Combine this with an effort to actually teach fundamental financial concepts and techniques to increase personal wealth in public school curriculum starting at an early age and continuing through high school, and I think we would see the issues facing our economy today go away long term.
The only arguments against these ideas that I can see coming a mile away is that US corporations will threaten to either move out of country or complain that there's no way they could compete under those constraints with their foreign rivals. Both of those fears are unfounded in fact and could not happen because of all the other factors which would come into play in such a scenario.
The fed rate simply has too little influence on all the above to make a difference in our globalized economy.
They should be lowered a full point this month and another half at the next meeting.
It will help those that are carrying construction loans (builders) with large inventories and development loans, and will help Heloc's. Some equity lines will be lower than the mortgage rate if they cut even 50 basis points this month.
It pyscologically will relieve some of the housing pressures, but most likely won't do much for the Home Mortgage rates, as right when the fed cuts the Stock market will jump for a bit. Which usually causes Home Mortgage rates to go up as well.
freedom
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feds rates
