Why the Fed's rate cuts won't help you

Why the Fed's rate cuts won't help you

articles.moneycentral.msn.com

The Federal Reserve today continued its attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates by three-quarters of a percentage point, to 2.25%, the lowest level since 2004.

But the Fed's effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education even as it has a large effect on U.S. banks' ability to fix their balance sheets by ra

(visit the link for the full news article)

This is a great article that puts it plainly that this is all about rich guys taking care of other rich guys. I found it refreshing to come from such a mainstream source. As he says " Washington is essentially robbing the poor to help the rich."

I guess the sad part is that nothing can be done?

articles.moneycentral.msn.com
(visit the link for the full news article)

reply to post by SoundFX


It's all about Wall Street. The rate cuts were for Wall Street. Period.

Originally posted by Silenceisall
reply to post by SoundFX

 

It's all about Wall Street. The rate cuts were for Wall Street. Period.

I know and people in general are too asleep to notice. Here it is right fron MSNBC.

"As if that's not bad enough, the Fed's swiftly conceived, unprecedented course of action harms the public in three other ways:

It boosts inflation by lifting the total number of dollars in circulation.

It undercuts the attractiveness of the U.S. dollar, which leads to higher food, energy and gold prices.

It cuts the yields of dividend-paying investments such as government bonds upon which retirees depend for steady income.
"

Originally posted by SoundFX

The Federal Reserve today continued its attempt to get out in front of the worst financial crisis to hit the world banking system in five decades by slashing short-term interest rates by three-quarters of a percentage point, to 2.25%,

But the Fed's effort will have little effect on the ability of the average American to get a cheap loan for a new home, car or college education ...

the banks can only make money from the new & lower rates

IF.... there a lots of people seeking loans,
do what i do, i only buy what i have in cash holdings, no credit for myself

but-> If i (or a family member) had a real medical emergency--- Then !
i would seek credit, nothing else would sway me,
including the event that if my son or daughter got in jail and needed bail...



the banks can't make money if they can't lend money out ---
at a profit

~~~~~~~~~~~

the National Board of Economic Research (NBER)
followed by the Government Accountability Office (GAO)
are the one's that officially tell us when the nation is in recession,
and neither has said we are in recession now or will be in the near future

[edit on 22-3-2008 by St Udio]

Thanks for offering that interesting article about that monetary-system of evil people. We never needed it (and we never will need it). It doesn't help us.

I see this as nothing more than the government giving you back a little less of what you already earned so we won't feel as cheated. Kind of like a robber handing you bank $20.00 of the $300.00 they ripped-off from you so in the unlikely event they get caught- they might receive a lessor sentence in exchange for a second of seeming compassion.