How Will The Fed Rate Cut Effect The Economy and You?

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How Will The Fed Rate Cut Effect The Economy and You?

Posted by britesprite 1199 days ago, popular 1199 days ago (http://www.yieldingwealth.com)
Category: Economy | Tags: economy fed rates

How will the fed rate cut effect the economy, you and your business? Pros and cons .. a well balanced article.

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forexlady 1199 days ago

The rate cut will be bad to the USD short term, but in the long term, it is what we need

neophyteblogger 1199 days ago

Borrowing gets us into this trouble and the rate cuts are meant to stimulate borrowing? I don't think so, I think the rate cuts will give some liquidity to the market, people will have some cash in hand and feel good about it.

thekritz 1199 days ago

At this point, it is obvious to everyone except for ben bernanke at the Fed that interest rate cuts cannot solve the financial crisis, which is being caused by a lack of confidence, and only secondarily by a lack of liquidity. The only thing Bernanke will achieve is to give investors false confidence that the worst is behind them, so that they can incite another asset bubble.

MMarquit 1199 days ago

I agree with with neophyteblogger. It's a bit psychological. I think that really, we need a different focus on the economy in general. One that focuses on wise personal finance decisions and less on borrowing. It wouldn't be a very sexy economy, but it would be a more stable economy, with downcycles being less spectacular than this one.

sunnyspeaks 1199 days ago

I think situation will improve only when Fed bring the interest rate to zero. It may not seem practical, but a bitter truth.

paulronan 1198 days ago

The Fed is engaging in some brinksmanship. A big cut it was, and if it doesn't work then they can't go much lower. A gamble, but hopefully worth it.

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