Home : Blogs : Chul KIM McGuire : Real Estate: Realtors: Homes: Corpus Christi - Padre Island - Port Aransas... LOOK LOOK LOOK

Will Federal Reserve Board Cut 0.75% To Help Stimulate the Economy and Keep It Out of Recession?

CorpusTV.com Headline News

Will the Federal Reserve Cut The Lending Rate by 0.75% in January?

Editorial Opinion

January 14, 2008. Corpus Christi - Padre Island RE/MAX REALTOR Mr. C. KIM McGuire

There are all the economic signs that calls for the Federal Reserve Board to cut the lending rate by at least 0.5% during their next meeting. The Fed Chairman even spoke recently to the media stating that they will do what ever is necessary to keep the U.S. economy from entering into recession. Click HERE for MaketWatch.

So www.ActiveRain.com bloggers, Home Buyers, and Home Sellers, now the question is not 0.5% cut, but could a 0.75% be possible?

In order to bring a strong message to the financial districts, I believe that the Fed Reserve will cut the rate by 0.75% as a sign and a bold move to help stimulate the economy with 220 volts to the Aorta.

What remains at stake is still the price of oil. Oil prices have hit their highest and the price per gallon at the pump is affecting many average income earners in the country. More money spent on filling the cars and trucks means less money to spend on food and consumer goods. Increased oil prices also means increased cost for products and services. (Consumer Price Index) With all those cumulative increased costs, there will be many potential home buyers who may have to wait to enter the real estate market.

Have you seen the cost of a gallon of milk and an average steak lately? What's next? A six pack of Budweiser, Heineken, or a bottle of Robert Mondovi Cabernet Sauvignon? How about a Whopper?

Note: Contents of this article are the sole opinion of the REALTOR. Just like anything else in life, individuals MUST use their own research, analytical, decision, and prediction skills!

Padre Island Weather for Jan. 14, 2008: Low-60's and OPTIMISTIC!

www.CorpusTV.com

Optimism is in my blood! I have Attitude of Gratitude and that's what I teach my Twins. Optimism is a matter of viewing On Top of the Box, All Around the Box, Under the Box, Outside of the Box, and yes, In The Box!

Cheers, KIM.

Contact Mr. C. KIM McGuire, n-PRO @ 361.215-8612, a RE/MAX Corpus Christi to Padre Island to Port Aransas Realtor, for Your Home Buying, Selling, or Rent needs

KIM McGuire Sells "Home Sweet Homes!"

Posted by Chul KIM McGuire on 01/14/2008 10:21 PM

Comments (8)

federal rate bank rate lending mortgage real estate realtors homes for sale corpus christi padre island port aransas kings crossing rent

This post has been included in Nebraska Information

8 Comments on Will Federal Reserve Board Cut 0.75% To Help Stimulate the Economy and Keep It Out of Recession?

JAN

2008

It may keep the economy out of recession, but according to the classic definition, real estate is already there.

Jim,

Unfortunately, I have to totally agree with you!

It just means that everyone in the real estate market (sellers, buyers, Realtors, home inspectors, mortgage brokers & processors, etc.) have to work much harder and smarter to get through this cycle.

I appreciate your honest comment! There are many Realtors and sellers still afraid to admit it.

Cheers, KIM.

I talked to a real estate attorney today in Florida. He told me it is as dead as can be, and with the lenders tightening down more it will make the current situation much more dire.

I agree on this one! Great post!

JAN

2008

Jim,

Luckily I sold my Padre Island client's home, waterfront lot, and dry lot in 2007. He and his wife sold their property in Cape Coral, FL before moving to the Island. And then they saw some signs nationwide and wanted to sell here and then move onto Tennessee to build a big log type cabin home in a mountain community. Here's their Mandalay land yacht. I believe the thing cost more than the house that I sold. Large Sony Bravia (42") on the front passenger head liner area. Tile floors and hardwood cabinets. I could ive in that!

Chris, thanks for your ditto comment!

Cheers, KIM.

Kim,

I do not believe the Fed would ever cut 3/4 point. I am almost sure they will do the 1/4 but hope they do the 1/2 point cut.

Mike,

I believe they will do definitely 0.5%. I'm hedging that they may do a historical move and do 0.75.

Lowering 0.75 will undoubtedly be a MAJOR event. I just think that there's enough economic factors out there, especially the housing market that they may do something almost unprecedented. We'll see.

Thanks for your comment!

Cheers, KIM.

I see you point Kim, there is unprecedented things going on already, but I really am not at all sure that a 0.75 would be entertained let alone done. It will be interesting to see where it goes and the results. I fear that we are trading one for another in the problem arena.

This blog does not allow anonymous comments