The boys at the Fed are having a great old time "helping" us out. Gas prices started to slip yesterday but bounced back up after the Fed rate cut. Wall Street loves the Fed. But main street is boarding up the shop windows. There is no way in good conscience, other than to make money cheaper, that the Fed should have cut rates. This rate cut hurts you and me at the pumps, in the grocery store, and frankly may or may not result in a mortgage rate cut or increase. So why did they do it. They did it because the guys who made this mess need cheap money to bail themselves out. Its a big problem when brokerage houses shake. But when thousands go into foreclosure well that's just tough. Money, as always, talks

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5 Comments on Fed Cuts Rates Again !!!!!

MAY
01
2008
320,583 Points 5 Featured Posts Outside Blog
Too bad it wont affect the mortgage market much. I had hoped for better long term housing rates but it hasnt happened much yet.
7:48am • #1
486,374 Points 3 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Charlie:

The question is how low can they go. My Mothers CD's are taking a big hit, also.
7:50am • #2
247,590 Points 32 Featured Posts Outside Blog
It appears that the Feds are only copying what was done in the 70's ! They made their cuts and put the US in extreme recession. They "claim" they are being more cautious this time around. They are just prolonging the inevitable by making smaller cuts every other month...that's not being cautious that's being plain dumb !
7:52am • #3
243,011 Points 29 Featured Posts Localism Sponsor Outside Blog

They did it because the guys who made this mess need cheap money to bail themselves out.  BINGO.

They're walking this slippery slope because they weren't paying attention the past few years (at best) or are grossly incompetent (at worst) and failed to take action before the run on cheap money since '01.  Now, as you say, all the big players are in trouble. The FED has to move in to alleviate the problem because to let those major players fold would be an unmitigated disaster. 

12:25pm • #4
MAY
03
2008
118,846 Points 9 Featured Posts Outside Blog

The better the stocks, the weaker the bonds. The weaker the bonds, the higher their returns need to be. The higher the bond rates, the higher the mortgage rate.

The Fed loves Wall Street, but if super-low rates was part of the problem, how are super-low rates part of the cure? Japan's equivalent of the Fed had rates near ZERO for most of the 90s. Let's hope we're not headed toward that type of economy.
7:58pm • #5

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