Yesterday, January 22, 2008, the feds lowered interest rates by .75%. Three quarters of a point is a huge drop in interest that the fed lends out on. Everyone anticipated a .50% drop. Why did this happen? Well I believe it was for the global market. You see, European markets took a huge hit. Bernanke, our chief Fed, announced the cut a week earlier of the scheduled rate cut in order to help the global markets. Well, it worked minimally. Things went decently (which is better than what we have been seeing) for about a day. All the markets around the world, including ours is declining. Everyone is selling off. That is not good market activity. Therefore, interest rates must come down even more. There is already speculation that the feds will be dropping another 75 basis points (.75%) on interest rates. It sounds like we are in the recession already. Is it to late Mr. Bernanke? I DON”T KNOW! How do you think you will be affected by the interest rate cut? You should really look into it.
takrealmoney.com
It means the dollar is going down the toilet even faster. Gold baby!
Casey, a reminder — sweet passive income awaits if/when you restart your blog. Of course, you’re probably too busy watching over your small pile of gold coins like a retarded leprechaun… :-p
I have been thinking of refinancing my house lately, in hopes of perhaps dropping my mortgage payment down a bit…so, with this information in mind, would you suggest waiting a little while to do this? Is this additional .75% drop anticipated soon? Are further drops anticipated in the near future? It would be great to lock in a new loan at an even lower rate…
Jamie, the interest rate came down .5% yesterday. There will be anticipation for more. However, it is not the mortgage interest rates that are lowered… it is the rate at which the feds loan to the banks. We will not really see mortgage rates come down yet. Hold tight.
talkrealmoney.com