so what does the 1/2 point drop in rates mean?

[Marc]

That's the toruble- market turmoil has nothing to do with the Fed rate. Not directly, anyway.

Drinking in the AM again?

 

[ctenidae]

Drinking in the AM again?

You got a porbelm with that?

 

[GrilledSteezeSandwich]

You got a porbelm with that?

I'm a big fan of morning drinking...but unfortunately I'm not allowed to drink or smoke pot during work hours so I have to drown my sorrows with McDonalds..:beer:

 

[jack97]

Hmm, still not awake yet, prob need another cup of something.

Not sure the .5 point will do, but in the town i live in we have lots of houses for sale, I hear that anything over 3/4 million has been on the market for months. People flipping houses are sweating it if they are leveraged deep.

I have no problem with people spending money and living the life they want. I have a problem when they expect other people to bail them out given they can't control their spending habits.

 

[hammer]

Here goes the value of the dollar...

http://www.boston.com/business/arti...and_to_1_to_1_parity_with_the_canadian_dollar

 

[riverc0il]

Here goes the value of the dollar...

http://www.boston.com/business/arti...and_to_1_to_1_parity_with_the_canadian_dollar

Here it goes further at least... value of a dollar has been in trouble for a while now.

 

[bigbog]

......

The sooner Wall Street is flattened the better.... In my $.01...distance between the haves & have-nots in the Great Society is far too great.
*Bet JimG thought he'd have a monopoly on stirring the pot...;-)

:flag:

 

[ccskier]

All this point dropping did was surge the stock market. It has done basically nothing to the mortgage market. The mortgage rates are based on bonds. Right now as you can see everyone is stock market crazy and not looking at the bonds. For the mortgage rates to drop, people need to work on the bond market. Yeah, a few days ago the market went bananas because of the fed's decision, but that has already started to dwindle, people threw money into the market and they are now backing off again. It is just a way for the government to divert peoples attention. It will be back in the shatter in a few days.

 

[tjf67]

A rate drop will not work it way into the economy for six months. I have heard though that a 1/2 point rate drop in Sept sets up Nove for a big snow month

 

[ccskier]

A rate drop will not work it way into the economy for six months. I have heard though that a 1/2 point rate drop in Sept sets up Nove for a big snow month

That sounds better!!!

 

[snoseek]

my head kinda hurts.

 

[hammer]

Here it goes further at least... value of a dollar has been in trouble for a while now.

True...it's just that I never thought we'd have parity with a Canadian dollar...

Would the rate drop help auto loans? I'm looking at having to get a new vehicle in the not too distant future...

 

[ctenidae]

Would the rate drop help auto loans? I'm looking at having to get a new vehicle in the not too distant future...

Theoretically, yes. Rate cuts generally take a couple of months to filter through everything, but I don't think this one will go as far as they ahve in the past. As I've said, the underlying problems haven't gone away. There's still a massive amount of low-grade debt out there, and banks are still looking at the potential of large amounts of non-performing loans in the near future. Credit rules have tightened in a knee-jerk way, with a lot of lenders flat stopping, but they can't keep that up- they need the revenues. One indicator of tighter credit is higher interest rates (supply and demand- as the supply of cash decreases, the cost increases). As uncertainty increases, teh cost increases as well. It's going to take another full point or so to have any meaningful impact on interest rates (stable ones, anyway. There will be some fluctuation, so if you can grab an artificially low rate, do), and with the recent cut, the Fed has practically forced themselves to make futher cuts down the road.

Which puts us right back to ridiculously easy credit that got us here in the first place.

 

[Paul]

 

[Marc]

The sooner Wall Street is flattened the better.... In my $.01...distance between the haves & have-nots in the Great Society is far too great.
*Bet JimG thought he'd have a monopoly on stirring the pot...;-)

:flag:

So give some of yours to the have nots. You could try being a little more proactive, you know.

 

[jack97]

There's still a massive amount of low-grade debt out there, and banks are still looking at the potential of large amounts of non-performing loans in the near future. Credit rules have tightened in a knee-jerk way, with a lot of lenders flat stopping, but they can't keep that up- they need the revenues.

Isn't this the main reason we have not had a recession? Thus the feds are preventing one by not increasing the rates.

 

[ctenidae]

Isn't this the main reason we have not had a recession? Thus the feds are preventing one by not increasing the rates.

Kind of like cracking open another bottle of bourbon so you don't get a hangover.

Yet.

 

[Moe Ghoul]

Gloom and Doom. We are in pretty decent shape as an overall economy.

Things sure change in a year. Wanna rephrase that?

 

[tjf67]

Things sure change in a year. Wanna rephrase that?

We were then. Now not so much.
It will be back.
What your point?

 

[Moe Ghoul]

We were then. Now not so much.
It will be back.
What your point?

We were? Ok. Any more predictions?