01-22-2008, 01:21 PM | #1 |
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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. |
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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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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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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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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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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01-23-2008, 10:16 AM | #15 | |
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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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01-23-2008, 01:09 PM | #18 | ||
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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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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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01-23-2008, 03:30 PM | #22 | |
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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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