Fed cuts rate

[BoatBuoy]

The fed just cut the rate 1/2 point, but I'm not sure what that means to me. Where's OMR when you need him.

 

[Ret USN CPO]

Re: Fed cuts rate

I wish someone would tell my bank...The interest rates on boat loans hasn't come down in the last 6-8 months since I first started looking.

 

[Haut Medoc]

Re: Fed cuts rate

Ain't gonna either....
The banks will keep the interest rates high to try & offset their losses....
Expect to see your monthly bank fees to rise, returned checks, etc.....

 

[OldMercsRule]

Re: Fed cuts rate

The fed just cut the rate 1/2 point, but I'm not sure what that means to me. Where's OMR when you need him.

Hey BB!

The Fed is very corncerned about the value of all of our single family homes, (as it should be, IM not sooooo HO).

The "sub prime" mess blew up (or became obvious to any one payin' attention), last summer. You know I've been a bit of a bear on "dirt" ever since I have posted on iboats, (and well before), fer a number of reasons, n' me predictions are comin' home now, (unfortunately: as I wish me fears were miss placed which they have not been).

I hope ya remember me gettin' in a bit o' trouble n' postin' a linc. ta Bill Gross, (from PIMCO who runs more bonds fer investors then any one else in the world), snivelin' n' whinnin' fer a bail out last spring.

The Fed is obviously very willin' ta risk some inflation, (to try ta stop potential deflation from gettin goin' in homes), as cuttin' 1.25% within a short period of time when rates are sooooooooo low and some inflation is already in energy and food mean they are real serious n' more then jus' a bit corncerned about the matter.

Fed Funds rates do not directly impact us at the retail level, it is a much bigger deal ta money center banks, and it also does trickle down to us little fellers n' gals through our own banks, (if ya have balances at variable rates where ya owe money).

I note the stock market did not rally on the rate cut, (but it didn't really take us down hard either as Mrs. Jones notes).

I don't know what can be done to get the housing prices and the supply and demand to a state of equilibrium, (it may jus' take time). What the Gubmint doesn't want is panic, and everybody tryin' ta sell at once.

The two back to back rate cuts are primarily designed to support banks who have taken massive hits (as the junk loans were mixed in with the good stuff), which is what Bill Gross was whinnin' about last spring too. We need banks to corntinue to do their job as financial intermeadaries until this stuff works it's way out.

If JB will let me, I will post a very good (and a fairly rare n' upliftin') linc. to an article from the WSJ Monday. [Only one very worthwile article JB]. The bad news is easy to find these days, and in bear markets a person always has to ponder some potential good news n' thoughts to keep from gettin' tooooooooooo negative with the rest of the crowd.

Good luck to all! Respectfully, JR

 

[thefairlaneman]

Re: Fed cuts rate

I have a varible rate equity low thats been at 8% for some time. Lowest rate was about 5. I better see a rate reduction SOON or will want to know why. I can will go some place else and get a lower fixed rate loan .

 

[Limited-Time]

Re: Fed cuts rate

Ain't gonna either....
The banks will keep the interest rates high to try & offset their losses....
Expect to see your monthly bank fees to rise, returned checks, etc.....

=Big Money............

 

[aspeck]

Re: Fed cuts rate

Yep, JR, lot of bad news being reported, but a lot of good news out there that is not being reported. I will stop there because of election time and I don't want to deteriorate into politics. However, bad news favors one party more than the other.

The Stock Market, and to a certain degree the economy, are run on expectations. If you expect that things will be better you will buy more, save less, and put more $ into the economy. If you thing things are going to be bad you are going to tighten your belt and not spend as much, therefore the economy will suffer.

Everything is not rosie, but it is not doom and gloom either...

 

[SgtMaj]

Re: Fed cuts rate

Man, I JUST refi'd the house last year, and this is the third cut since. I need to call my mortgage broker. Good thing it was a no-cost refi.

 

[rogerwa]

Re: Fed cuts rate

My wife and I are about to embark on a major rennovation and was going to refi to fund it. The rates on a downward slide couldn't come at a better time. I currently sit on a 5.5% fixed 20 year. I was not thrilled about having to refi to a higher rate. Maybe I won't have to.

 

[Scaaty]

Re: Fed cuts rate

I have a varible rate equity low thats been at 8% for some time. Lowest rate was about 5. I better see a rate reduction SOON or will want to know why. I can will go some place else and get a lower fixed rate loan .

My HELOC is with Schwab. 1% under prime. It will go down end of month. It has always followed the Fed rate cuts (AND increases!). With this 1 1/4 cut this month, I will be at 5%....(hmm, maybe time to buy ANOTHER boat??...WAIT...thats what got me in debt the FIRST time!)

 

[Hoss the Hermit]

Re: Fed cuts rate

I'm gonna stay outta this 'cause it's such a load of crap that if I start I won't stop.

Edit: I'll help you out in staying out of it, Hoss.

 

[newbie4life]

Re: Fed cuts rate

EDIT

So much for staying out of it, huh Hoss?

Edit: You, too, Newbie

 

[BoatBuoy]

Re: Fed cuts rate

Last edited by BoatBuoy : Today at 08:00 PM. Reason: comment on edited political comment on deleted political comment.

 

[JB]

Re: Fed cuts rate

LMAO @ Boat Buoy

 

[OldMercsRule]

Re: Fed cuts rate

LMAO @ Boat Buoy

So can I linc one "very nice", straight forward, non political 1 or 2 page WSJ article from this Monday that talks about some sunshine vs the darkness we are now all focused on? Hmmmmmmmm?

I tried ta stay non political in me reply ta BB didn't I? I will be a good ol' boy JB, n the fellers n' gals on iboats may like the read!! (I bet they will). JR

 

[SgtMaj]

Re: Fed cuts rate

So can I linc one "very nice", straight forward, non political 1 or 2 page WSJ article from this Monday that talks about some sunshine vs the darkness we are now all focused on? Hmmmmmmmm?

I tried ta stay non political in me reply ta BB didn't I? I will be a good ol' boy JB, n the fellers n' gals on iboats may like the read!! (I bet they will). JR

I think there's a lot of sunshine out there... with China's market taking a dive, that'll actually help the US out... then the rate cut... the possible tax rebate... There's a lot going on that's looking up. Of course the news is always doom and gloom, but you'd get that even if the crime rate vanished, no one ever got sick or died of anything, and the whole world became rich. We'll always have doom and gloom on the news, especially the major networks. They think (and who knows, maybe they are right) that doom and gloom is the way to get the most viewers.

 

[JB]

Re: Fed cuts rate

The term "controversial" reaches beyond Republicans and Democrats throwing mud at each other, OMR. It includes commentary that gets someone else hot under the collar. Bashing Congress, the IRS, etc is also included.

Feel free to refer members to the WSJ article, but do not post a link to it.

 

[Don S]

Re: Fed cuts rate

The fed just cut the rate 1/2 point, but I'm not sure what that means to me. Where's OMR when you need him.

And you wonder why posts get deleted. When you beg for controversy, you get it.

Can you hear the CLICK of the lock on this thread?