Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Lower than expected. There's no where left to run now that it's at 0.
Helicopter Ben needs to find some new rabbits for his hat.
Fed cuts target for key rate to record low - Yahoo! Finance (http://finance.yahoo.com/news/Fed-cuts-target-for-key-rate-apf-13846723.html - broken link)
snippet:
"The central bank on Tuesday said it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent."
Lets see. How much money will I make if I take a 1% "cheap" loan from a bank and invest it in something that will lose 20% over the next year?
Answer: Not very much at all.
Again, as I have said, who will go into debt?
What does game theory say about individual interest verse collective interest?
How will people as a whole borrow more when lending standards have been tightened? How will I get into the free buffet if I do not have a stamp on my hand?
Let's see if we are prepared? Everyone has taken a beating in their real estate portfolio, stock portfolio, job situations are tentative, unemployment climbing, credit is tight and not easing AT ALL due to interest rate drops, lack of credibility in rating agencies (Madoff et al), commercial real estate shoe still to drop, etc. Yeah, everything is just peachy because the market has rallied a few points. Woop, woop! I don't know about the rest of the country but NYC is zombie land these days.
Besides, wasn't this tried in Japan in the 90s? It turned out GREAT for them, NOT.
Last edited by texan2yankee; 12-16-2008 at 02:23 PM..
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,624 posts, read 57,628,813 times
Reputation: 46064
Quote:
Yep...that's about all they have left. And they'll use it, believe me!
I'm sure presses have been running overtime for the past 2 months. They seem to be 'spending' fast, and it is going in the 'drain'.. I have a 'flushing' sound ringing in my ears.
Quote:
stock market is rejoicing
and where do we go from here?
They should have placed some restriction on 'spread', since we should be raking in about .0025% on our cash reserves and paying 5%+ for borrowing. Someone is getting fat, and his initials might be, H.P. or B.F. (or related friends)
Someone else is getting real skinny and their initials might be Y.O.U.
Watch for more rabbits coming out of the hat, they seem to be pretty good at drumming those up, I hope they are REAL good!
Let's see if we are prepared? Everyone has taken a beating in their real estate portfolio, stock portfolio, job situations are tentative, unemployment climbing, credit is tight and not easing AT ALL due to interest rate drops, lack of credibility in rating agencies (Madoff et al), commercial real estate shoe still to drop, etc. Yeah, everything is just peachy because the market has rallied a few points. Woop, woop! I don't know about the rest of the country but NYC is zombie land these days.
Besides, wasn't this tried in Japan in the 90s? It turned out GREAT for them, NOT.
Isn't that why they have no problem dropping the rate? They want to do anything they can to keep these housing prices propped up.
Isn't that why they have no problem dropping the rate? They want to do anything they can to keep these housing prices propped up.
Actually it's not just about housing anymore J Arp. Everything is falling in value..a deflationary spiral. They are now trying to save the US economy.
It's way beyond real estate now.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.