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Well, the Fed's 75 basis point cut is working
Submitted by dcarter9 on Tue, 01/22/2008 - 11:17
The market is way down and gold has rallied to back over $890/oz. from down to less than $860/oz. and silver is back over $16/oz. from around $15.50/oz. » |
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Feds cut is working - you must be kidding
I advise you to watch what is going to happen to dollar this summer. I would not be surprised if there would be a run on it.
The Chinese and others learned their lesson and they will not lend us money anymore - to be re-paid at 50c a dollar.
That means that Feds have only one "weapon" - print more money, because election is around the corner. That's Feds - completely independent from political pressure.
Yep the FED .75bp cut is
Yep the FED .75bp cut is working. Your fiat dollar just took a BIG hit.
Last night (2AM) in the FX (currency) market the EURO/USD was at 1.4364 by 9:30AM his morning it was at 1.4643 a move of 279 pips. The GBP/USD from 1.9336 to 1.9625 a move of 289 pips. When the FED lowers interest rates or prints money for stimulas packages your fiat dollars take a BIG hit.
I believe that banking institutions are more dangerous to our liberties than standing armies.The issuing power should be taken from the banks and restored to the people to whom it properly belongs.
Thomas Jefferson
“It does not require a majority to prevail, but rather an irate, tireless minority keen to set brush fires in people's minds”
-Sam Adams
Dude, you have no clue on temporal history!
Quit referring to a Gregorian Calendar, which was adopted in 1582, LONG after Pentecost (if it happened, and if it did as how theh Bible says it did, then God ordained women as his ministers, too!), so go do the math and figure out the day adjustments backwards from then to whatever year that supposedly happened. You rely on custom, not fact.
http://en.wikipedia.org/wiki/Gregorian_calendar
In other words, the modern calendar gives you a 1 in 7 chance of any day being the true Sabbath. So which is it? ANSWER: Treat them all that way, or simply get out of Abrahamic religions entirely.
Amazing how some people have no clue.
And none of this has anything to do with electing Dr. Paul anyway!
"Welcome to 2008: The Year of Ron Paul!"
The President, and the bankers....
Are trying to head off a 100% Democrat party sweep in November. That's how long sighted these idiots are.
But, they are giving heroin to the heroin addict to try to accomplish it.
The dollar is going to buy less food, less energy, and less housing when they are done.
But since we have no productivity base in the USA to withstand the devaluation of our currency, and the federal debt is already larger than our possible tax base, there is a good possibility that the US dollar will crash when foreigners wake up to the fact that other currencies are a better investment.
If it does, the USA will will cease to be a world super power, and it's citizens will have Central American living standards for a decade.
Like Argentina, and Russia.
The Iranians will open their oil exchange in Feb, to sell oil in Euros, and petro dollars will bypass the US Central bank and no longer prop up the dollar.
GW will need new intelligence to bomb Iran for this, so get ready.
When the final leg is kicked out, and oil jumps to $250 a barrel, the dollar will get dumped, and the Euro will be the new World reserve currency.
How else are they going to give us the Amero?
Russia already stepped up to
Russia already stepped up to bat and said anyone that attacks one of its allies is going to get nuked.
http://ap.google.com/article/ALeqM5i1fg9K4w_OQvYX65kemvhiOOJ...
That bourse IS going live whether the US likes it or not. Time for everyone to start bailing ship on the dollar.
STOCKS, BONDS, PAPER MONEY - ALL MODERN EXCESSES OF GREED
Time was there was no "stock market", no "bond market" etc. People owned realty and other real assets. The whole paper system that has grown up in America is a modern phenomenon of capitalistic excess. Corporations used to be viewed a dangerous to govenrment and freedom because if they grow too rich and powerful they can maniplate government. In India, Corporations actually had their own armies and soldiers to govern the nation! Thus, there once were statutes against accumulations and the overall value corporations were allowed to reach, to keep them in reasonable size and power. These restraints have all been abandoned in favor of the "bubble" approach that allows them to get as big as they want. Freedom is gone; representative govenrment is gone; stability is gone. Better go back and relearn the lessons about big business!
The 10 year bond
has also dropped to 3.543% and that is what most 30 year fixed rate mortgages are based upon. Watch that 10 year bond as I believe it is the main indicator of where our economy is heading.
All the cut is doing is
All the cut is doing is delaying the inevitable...the more they cut...the more they expand the money supply...the more the dollar drops...the higher inflation goes...eventually it crashes...then what...
They give us our Saviour?
Our Saviour the Amero...YAY! :D
======================================================
Federal Reserve to the American People:
"Catapultam habeo. Nisi pecuniam omnem mihi dabis, ad caput tuum saxum immane mittam."
================
Who is John Galt? Vote ███ ███ 2012!
interest rat cut, wait to refinance?
I have a question, so if the rates are going to keep going down and down, then I should wait and refinance my house at a lower interest rate, right?
I understand that the economy will be bad and the money will be worth much less, but still, I would rather pay say, 3% on money than 8%. Am I missing something or am I right??
I appreciate any comments other than "put a gun to your head, we are all going to die anyway". I'm not interested in doom and gloom, just what is the next step.
Another question to consider
is your home's value. If you wait for the lowest rate, will your home also drop in value and with a lower property value will you be able to refinance. Most lenders will only allow 80% LTV (loan to value ratio) on a refinance.
WAIT!! Take your time
First off the lowering of Interest Rates does not directly affect Home Mortgage Rates. They will go down, but not in the same manner as the Fed Rate. The cuts are not over. I am in the same boat you are. I am at 6.8% fixed 30 year, but if I can get close to 4.8% I will Re-Finance. I already have a call into my mortgage broker. I will even do a 15 year fixed at 4.55. This is probably wiser since it cuts the interest by hundreds of thousand over the life of the loan. So it is a wait and see game. The rule of thumb is, if you can save 2 points or more on your current loan, then do it. The fed will lower again on Jan 30th, and then it takes about 20 to 30 days for the rates to start to settle into the Mortgage prices. I would advise you to call your mortgage broker, and have everything ready. Hopefully the broker is a friend and will not lie to you. Many of them will add all kinds of additional fees, and will even get "Back Points" by putting you into a certain loan. Also, if you have a mortgage broker that is always telling you "You Better Act FAST" then you are in trouble. Do it at your own speed, and own pace and research many different brokers and companies. This is the biggest purchase that most people make in their life, but most people spend more hours playing video games in a day, then time invested in researching the biggest purchase of your life.
NOT 15 yr fixed! 2 MUST READ BOOKS for financial prosperiy!!!!!
The bank misleads everyone by showing the extra "interest" you pay if you go longer.
You actually save thousands of dollars because of a couple things:
You have use of today's money today and pay it off with inflated money. You can utilize that "extra" monthly money saved by seeking other investments - NOT THE STOCK MARKET - that's gambling.
The extra paid in interest pales in comparison to what you actually gain. Plus it's tax deductible!
I recommend two of the best financial books on the market - for ordinary people. Simple & easy to read and comprehend as they give step by step examples of actual savings and reasons.
Lifetime Economic Acceleration Process (L.E.A.P), the Key to Financial Success, by Robert Castiglione. Go to their website and read what they have to say about this very issue. www.leapsystems.com
Second book, KILLING SACRED COWS by Garrett Gunderson & Steven Palmer. Order here: www.killingsacredcows.com
Gives the reasons we were given bad or mis-guided information from teachers and parents - thus "myths" about money that grew out of depression-type mentality.
Recommend these to EVERYBODY. I've paid thousands of dollars for financial guidance and find these the first to recommend.
Sure, if you can lower your
Sure, if you can lower your payments significantly, then refinancing might be for you. During inflationary times you can go into debt and pay the money back with money that's worth a lot less.
www.paulforronpaul.com
Child...
...it is true that you would pay less on loans, but with lower rates every day things will cost more. Gas for your car, heating your home, food to fill your stomach. Because lowering the interest rate devalues the dollar. But fear not, the end is not near.
G_d bless
Attend a Church of your choice this Saturday
G_d bless
Attend a Church of your choice this Saturday
No need to panic Children,end of the world is not nigh..
G_d bless
Attend a Church of your choice this Saturday
G_d bless
Attend a Church of your choice this Saturday
1st Day of the Week is the Christian Day of Worship
Hey, Sabbatarian! Jesus rose on the first day of the week, the church was started on the first day of the week (1st Pentecost after Jesus' resurrection), and they met each first day of the week to break bread (Acts 20:7), have services and give to the support the work of the church. (I Cor. 16:2) Sabbath-keeping is for Jews and unbeliever. Get with it.
Dude, the Baptist Board is 3 blocks that way
Make haste. Oh wait, you're not KJVO? Well, you can debate it with them. Bye.
Defend Liberty!
In layman's terms
I'm extremely interested to know exactly what's going on with the markets right now, but i'm still fairly new learning how it works. I understand that the market suffered some serious drops recently, but i'm not sure what's meant by 75 basis point cut or how this whole thing results for the common american. in other words, if someone would be so kind, please summarize this for me in layman's terms so i can get a better understanding of the situation? I would appreciate it.
~I will never again accept the lesser of two evils.~
This is tough to do in one paragragh
But I will try. The federal Reserve is lowering Interest rates to make the banks lend more money. When the fed lowers interest rates, it in esance takes down the value of the US dollar. The world investment markets invest in countries that pay a better dividend, so by lowering the interest rate, the Fed is attempting to re-ignite the US economy, but is losing foreign investment due to the lower rate of return. With a lower interest rate, the average American is supposed to borrow more, buy houses etc, at the expense of the dollar to stimulate the economy. The problem is, the credit markets are locked up. In previous years, people with little or no money down could get into a home loan. Those loans are gone. So this temporary fix will do nothing for you and I. Unless you own Gold or silver. When the Fed lowers interest rates like this, as I said, the dollar falls and Gold and Silver skyrocket up. The dollar on the world markets is less attractive to foreign investments, because the rate of return is lower then other countries. I believe New Zealand is paying 8.5%. So which country would you put your money into? One that pays 3.5% or one that pays 8.5%. The Fed should be raising rates right now, but they won't. Take the time and google all of these terms, and if you take a couple hours and read, you will have a better understanding of what is going on.
Fiat Currency (All Paper Money)
Creation of the Federal Reserve
Monetizing Debt
Carry Trade
Fractional Reserve Banking
CPI
GDP
If you can explain these topics, then you will understand what a disaster the Fed is creating.
Hope this helps!
Then watch the videos "Freedom to Facism" and "Money Masters" on google video.
Rate Cuts And You ..
Think of it this way:
There is a giant pool of cash available in an international market (currency market).
The owners of these cash care not about nationalistic themes, they care about PROFIT, in this case rate of return for depositing thier cash.
When one nation drops interest rates and none other follow, people will naturaly gravitate towards the currency that offers the relativley HIGHER interest rate, in this case anyone but America.
So every time the FED lowers interest rates, more international funding leaves the dollar to go towards higher yielding currencies.
The more money leaves the more DOLLARS become available on the market. Supply and demand says the more supply available the lower the cost ... the dollar falls.
This is your dollar ... your paycheck, your ssvings.
Everytime the FED lowers rates to try to manipulate a soft landing on Wall street he does it by weakening the dollar, lowering your paycheck.
Today you got a 2% paycut according to the currency markets at present.
Enjoying your paycut?
Thats my best effort at explaining it in simple terms. Hope you get the general idea ..
Good points but....
....it's way more complicated. For example, if you have a large loan on variable rates then you just got a pay rise.
A drop of 75 basis points
A drop of 75 basis points means that the Federal Reserve lowered interest rates 3/4 of a percent, from 4.25% to 3.5%
This will make borrowing money easier. When people borrow money it is not taken from a bank vault, it is newly printed. More money in circulation means that the dollars already in our hands become worth less.
The key to understanding this is that today debt is money. Money used to be gold or silver. Now money is created when someone takes out a loan. A dollar which used to be a fixed amount of silver is now nothing more than the creation of a dollar out of thin air and someone's promise to do some work in the future to pay that dollar back.
Silly, isn't it?
Ron Paul Explorer: The All Paul Search Engine
Ron Paul Explorer: The All Paul Search Engine
Great, concise,
explanation.
And yes, it is pretty silly! :p
I'm certainly no expert, but
I'm certainly no expert, but the Federal Reserve lowered the interest rates that consumers and banks have to pay on various lines of credit by .75%. The idea behind this is that it will encourage people to borrow money which they will in turn spend, therefore boosting the economy. It seems to be having some effect on the stock market, but probably not as much as they had hoped. As of 11:45 EST the DOW is down 150 points, which is much better than the 600 or so points it was down last night, but still a pretty big loss on top of a bad week for the markets last week.
Google it and have someone read it to you
G_d bless
Attend a Church of your choice this Saturday
G_d bless
Attend a Church of your choice this Saturday
Why are you being such a douchebag?
Every comment you've posted today is sarcastic, condescending, and totally worthless. Stop being an ass and let people have a discussion without you sticking your POS $.02 in. How about it?
You are right of course
G_d bless
Attend a Church of your choice this Saturday
G_d bless
Attend a Church of your choice this Saturday
In God We Trust.
May God protect America from the few morons who are leading it to a self destruct situation.
Start counting our yourself
God can't change this country, only we can. Don't rely on luck or God to get you through this, start relying on yourself. Those moron leaders are smart enough to know that as long as you don't take their power away, nothing will change at all and the path of self-destruction will be realized.
Empires can crumble.
~The Price of Freedom is Eternal Vigilance. The Price for Security is Freedom. The Choice is Yours to Make.~
~I will never again accept the lesser of two evils.~
For now!
The .75 interest rate cut is like putting a band-aid on a severed artery! By later today or tomorrow, the market will overwhelm the quick fix and bleed out. We need Dr. Paul to stitch this up!!!