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      01-22-2008, 01:21 PM   #1
TunedM2C
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Exclamation Fed lowers rate by .75% today w/ more cuts coming.

Such a drastic cut in between sessions is the first of it's kind since 9/11/01. There should be another .25%-.50% by the end of the month and possibly another 1% before the year is done. So those out there with HELOC's, credit cards, student loans, new car loans, etc. should welcome this news.

I'm in the mortgage business and we're starting to see the refinances pile in as well. This along with the savings from the aforementioned above should help put this economy slowly back on track. Too early to tell but let's hope it does what it's supposed to do.
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      01-22-2008, 01:38 PM   #2
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This cut is going to do more harm than good.
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Originally Posted by I Vtec, do you? from 8thCivic
I bought a 197 HP car and if I shifted it at 4k like you want me to I'd be driving a car that made 100 HP
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Dear Joe, unfortunately, our service technicians were unable to reproduce the problem that you mentioned. Therefore, we will be unable to perform any work that you claim is necessary. We apologize for the inconvenience.
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      01-22-2008, 01:40 PM   #3
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I guess only time will tell though we truly are in a bad situation here and the effects are felt worldwide.
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      01-22-2008, 02:04 PM   #4
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Quote:
Originally Posted by menotakoala View Post
This cut is going to do more harm than good.
I agree.
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      01-22-2008, 04:12 PM   #5
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Housing prices are waaaaay down, and interest rates are getting back down there. Good buyers market, but also I think they are trying to get people to do re-fis on their adjustable rate mortgages, before an even larger glut of foreclosures come to the market.
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      01-22-2008, 04:49 PM   #6
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As of today, we're at 5.375% on a non-jumbo 30-yr fixed. Tomorrow that could very well be 5%. This would match the lowest we've seen during the '03 refi. boom.
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      01-22-2008, 04:57 PM   #7
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Quote:
Originally Posted by menotakoala View Post
This cut is going to do more harm than good.
Don't necessarily agree with that. With the way the market has been responding lately, the Fed has to find some way to prevent tailspins. That said, these rate cuts have a lot more to do with Greenspan and his love affair with rate increases than anything else. At least in my opinion.
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      01-22-2008, 04:58 PM   #8
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As of today, we're at 5.375% on a non-jumbo 30-yr fixed. Tomorrow that could very well be 5%. This would match the lowest we've seen during the '03 refi. boom.
Yup - it's a heckuva lot better than those double digit rates we got stuck with during the Carter daze.
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      01-22-2008, 05:35 PM   #9
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Not sure of the urgency here - general economic indicators here and around the globe are ok - we are a global economy, whether we like it or not.

How does an Economist get out of a hole? He assumes a ladder and climbs out! (Economics humor is pretty lame...)
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      01-22-2008, 06:15 PM   #10
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Originally Posted by colonel1961 View Post
How does an Economist get out of a hole? He assumes a ladder and climbs out! (Economics humor is pretty lame...)
Yeah, but it's better than viola jokes! ; -)
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      01-22-2008, 07:20 PM   #11
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Yeah, but it's better than viola jokes! ; -)
Or the 'dicker' joke...

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      01-22-2008, 11:24 PM   #12
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they are trying to correct oversteer.
they have performed one step but more than one step is needed to fully correct and not go into another spin





^ I'm good
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      01-23-2008, 02:39 AM   #13
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Quote:
Originally Posted by MPower View Post
Don't necessarily agree with that. With the way the market has been responding lately, the Fed has to find some way to prevent tailspins. That said, these rate cuts have a lot more to do with Greenspan and his love affair with rate increases than anything else. At least in my opinion.
Greenspan didn't raise rates. Also, these cuts will cause more people to borrow more money and in return, we will be seeing more people defaulting on their mortgages and see more foreclosures. So we will be seeing the economy go even lower. Frankly speaking, I don't know what some of the brokers and realtors are smoking, but we are in a recession.
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Quote:
Originally Posted by I Vtec, do you? from 8thCivic
I bought a 197 HP car and if I shifted it at 4k like you want me to I'd be driving a car that made 100 HP
Quote:
Originally Posted by Honda Motor Co.
Dear Joe, unfortunately, our service technicians were unable to reproduce the problem that you mentioned. Therefore, we will be unable to perform any work that you claim is necessary. We apologize for the inconvenience.
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      01-23-2008, 09:04 AM   #14
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How much will it affect the car loan rates?
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      01-23-2008, 10:16 AM   #15
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Quote:
Originally Posted by menotakoala View Post
Greenspan didn't raise rates. Also, these cuts will cause more people to borrow more money and in return, we will be seeing more people defaulting on their mortgages and see more foreclosures. So we will be seeing the economy go even lower. Frankly speaking, I don't know what some of the brokers and realtors are smoking, but we are in a recession.
But at the same time it will mean that all those people that are close to defaulting to due higher refinance rates, on things like mortgages, might not. Also, with a flood of cheaper houses, because of that situation happening over the last year, and the lower rate, means it's more affordable for people to get started out.

Granted some people may take the opportunity to max themselves even more, but those people obviously haven't learned the lesson yet:wink:

And how you think that higher interest rates will help stimulate an economy out of a recession?...The higher rates go, the less people want to spend. The less people spend, the more it hurts the economy...The lower rates are, the more they spend, the more the economy gains...
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      01-23-2008, 12:54 PM   #16
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Quote:
Originally Posted by Khobin~ View Post
But at the same time it will mean that all those people that are close to defaulting to due higher refinance rates, on things like mortgages, might not. Also, with a flood of cheaper houses, because of that situation happening over the last year, and the lower rate, means it's more affordable for people to get started out.

Granted some people may take the opportunity to max themselves even more, but those people obviously haven't learned the lesson yet:wink:

And how you think that higher interest rates will help stimulate an economy out of a recession?...The higher rates go, the less people want to spend. The less people spend, the more it hurts the economy...The lower rates are, the more they spend, the more the economy gains...
You're forgetting that the banks are lending out money that won't be paid back. So the banks suffer and they go out of business and then everyone's screwed. And then that's when the government takes over then everything goes to $#!+. The real way to stimulate the economy is to lower taxes. And if the feds want to control this inflation that we have, they need to raise interest rates. Because of inflation you need more dollars to compensate. From what I can tell, you're all up for lower interest rates but that causes an even higher inflation. Is that going to help spending? I think not. Everything you buy is more expensive.
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Quote:
Originally Posted by I Vtec, do you? from 8thCivic
I bought a 197 HP car and if I shifted it at 4k like you want me to I'd be driving a car that made 100 HP
Quote:
Originally Posted by Honda Motor Co.
Dear Joe, unfortunately, our service technicians were unable to reproduce the problem that you mentioned. Therefore, we will be unable to perform any work that you claim is necessary. We apologize for the inconvenience.
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      01-23-2008, 01:04 PM   #17
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I want my $800 federal kicker
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      01-23-2008, 01:09 PM   #18
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Originally Posted by Brandon26pdx View Post
I want my $800 federal kicker
We all do.
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Quote:
Originally Posted by I Vtec, do you? from 8thCivic
I bought a 197 HP car and if I shifted it at 4k like you want me to I'd be driving a car that made 100 HP
Quote:
Originally Posted by Honda Motor Co.
Dear Joe, unfortunately, our service technicians were unable to reproduce the problem that you mentioned. Therefore, we will be unable to perform any work that you claim is necessary. We apologize for the inconvenience.
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      01-23-2008, 02:14 PM   #19
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this killed all hopes and bonuses for my wife and I to move into a central park west apt... but we still got a nice place..
I hate how fickle our market is.
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      01-23-2008, 03:16 PM   #20
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Originally Posted by menotakoala View Post
We all do.
You can count me out - not that I would qualify anyway. But, it sends a horrible message...and, is not truly needed.

Economies ebb and flow, i.e., we will never eliminate the business cycle, nor should we. Tough times 'thin the herd' from a business perspective and the winners continue and future capital ends up in the hands of those best suited to grow it...

IMHO

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      01-23-2008, 03:27 PM   #21
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Quote:
Originally Posted by menotakoala View Post
Greenspan didn't raise rates.
Maybe I am reading this wrong...

http://www.usatoday.com/money/econom...er-point_x.htm
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      01-23-2008, 03:30 PM   #22
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Quote:
Originally Posted by menotakoala View Post
You're forgetting that the banks are lending out money that won't be paid back. So the banks suffer and they go out of business and then everyone's screwed. And then that's when the government takes over then everything goes to $#!+. The real way to stimulate the economy is to lower taxes. And if the feds want to control this inflation that we have, they need to raise interest rates. Because of inflation you need more dollars to compensate. From what I can tell, you're all up for lower interest rates but that causes an even higher inflation. Is that going to help spending? I think not. Everything you buy is more expensive.
Banks going out of business??...lol, there was just an article in the paper last week saying how Banks were thinking about keeping current interest rates, despite the Bank of Canada planning to lower the prime rate, because of how they lost money from what's been happening in the States...then it went on to point how all of the 5 major banks have posted well over 2 BILLION dollars in profit...yeah, those poor bastards will be out of business in no time...:biggrin:

You're of course assuming that people don't pay their bills...but if interest rates go up, then people currently at the limit, won't be paying anything, it'll mean bankruptcy and the very thing you're worried about. if the interest rate goes down, then that means people at the limit now have some extra cash...and if they're smart they'll use it to pay down that debt that much faster.:wink:

Lower taxes would always be a good thing, but realistically do you ever think that will happen??

Inflation depends on a lot more then just interest rates, like fuel prices, wages, stricter environmental controls which can add costs to manufacturing, etc.
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