FED cuts by 0.5%

moanymoany

Realy wrote: »

Why is low rates feeding credit.
Credit can be at any rate but if is not lent it does not matter.
A drop in rates will not mean more credit do you not understand that?
It will just make the businesses with loans have slightly more breathing space.
I think you will find we are already in the crash, but if you want to belive in some NWO scenario good luck.

Only if those rates filter through the banking system to the small companies who need the money.

As far as I can see the cuts we have had are not making much - if any - difference to the people who borrow money!

napoleon

Lowering interest rates now is short-termism and will lead to rampant inflation a few years down the line,. Don't drop them further, if anything, put them up

sabretoothtigger

I read that a problem with low interest rates is that it can make short term lending of money uneconomical and damage the credit markets. A fed rate of 1% seems worrying but then their national bank is still lending directly to businesses

StevieJ

napoleon wrote: »

Lowering interest rates now is short-termism and will lead to rampant inflation a few years down the line,. Don't drop them further, if anything, put them up

Simple economics really, BOOM = Increase rates, err, RECESSION = Reduce rates. Unless of course you wish to meet your Waterloo.

mewbie_2

Mewbie goes Glenda Slagg shock...

Interest rates!! What's all the fuss! Get 'em down Merve boy and lets all start to party again. Plus I need help with my mortgage and the economy is falling quicker than my knickers on a Friday night!!

Interest rates!! Get 'em up sexy Merve!! Give me interest on my savings, and keep inflation down.. and I'll show you a different kind of inflation!! Geddit!!

ed: you're fired.

ad44downey

StevieJ wrote: »

Simple economics really, BOOM = Increase rates, err, RECESSION = Reduce rates. Unless of course you wish to meet your Waterloo.

If economics is that simple then how come where in the shiite now then?

Think outside the box. Just because every halfwit on TV says we need lower interest rates doesn't mean it's true

Realy

ad44downey wrote: »

If economics is that simple then how come where in the shiite now then?

Think outside the box. Just because every halfwit on TV says we need lower interest rates doesn't mean it's true

Better than the halfwits on here saying put them up.
Outside the box.:rotfl:
Anyone thinks rates should go up are off their box.
I can only think that the only people who want them to go up are desprate to buy a cheap house and do not care about people jobs or the economy.
Why are all other major economys droping theirs in a recession but half the loons in here think they should go up?

Will more jobs be lost if rates go up? YES.

Infact I dont know why I am arguing as they will be down by .5% at least next week.;)

ManAtHome

Realy wrote: »

Better than the halfwits on here saying put them up.

Unlike the very clever people who just know there is a magic money tree which will provide sufficient liquidity at whatever rate Troosers cares to suggest..?

Generali

sabretoothtigger wrote: »

I read that a problem with low interest rates is that it can make short term lending of money uneconomical and damage the credit markets.

That sounds like a chicken-egg conumdrum to me.

Do low interest rates damage credit markets or do bad credit markets cause low rates of interest.

The latter could easily be true as lots of savers chase a few good credit risks. I guess the way to spot it would be good risks getting extremely low rates and not so good risks getting rates that are normal or high.

StevieJ

ad44downey wrote: »

If economics is that simple then how come where in the shiite now then?

Think outside the box. Just because every halfwit on TV says we need lower interest rates doesn't mean it's true

I am more impressed by the half wits that say we should increase interest rates. By the way shiite is living in places like Rwanda, which is where we would be if anyone let someone like you near the reigns of power.