The Feds lower the interest rate to 2%

[Frustratedlady]

Pretty soon, they'll be giving money away.

The Federal Reserve has lowered its benchmark fed funds rate by a quarter
point, to 2 percent.

Log on now to www.cbsnews.com, or wap.cbsnews.com for wireless users, for details.

[DerekJ]

1. WOW

[AllentownJake]

2. Great

Any hopes of the dollar rebounding goes out the window. I wonder if money has any nutriotional value.

[SoCalDem]

6. not for me.. our CDs mature next month

and the interest we will renew then at will suck :(

[backscatter712]

12. Same here.

I'm still on a CD that I locked into months ago, which is only 4.2 percent or so.

When it rolls over, the new rate will be down by several full points - I'll be lucky to get any money at all from them.

[SoCalDem]

14. We have 3 at 4.67.. I shudder to think what they will be now

odd how people who are not in debt and who save, end up losers :(

oour house lost $30K (on paper) and our 401-k took an 8K hit last quarter..

[tabasco]

20. I don't think so but if you run out of toilet paper, you have a backup.

Probably cheaper to use dollars than Charmin.

[glowing]

3. Yes, but it won't be given to us.

[Maddy McCall]

4. WOW.

That's the hugest cut I can recall in recent history.

WOW.

[Frustratedlady]

7. No, they lowered it BY a quarter point TO 2%.

[Maddy McCall]

18. OH! I misread!

Thanks...got it.

[spinbaby]

5. Meanwhile, subprime mortgages resetting to exhorbitant rates

14% isn't uncommon.

[SoCalDem]

9. Back in '79 our interest rate FIXED 30 yr was 15.86%

it's all relative ...

[spinbaby]

17. But the prime rate was 15.75%

There's the difference.

[Cant trust em]

8. sucks for savers like me

[Frustratedlady]

11. Use your savings to stock up on food.

You'll save more than putting it in the bank, as the food prices are rising more than the bank can pay.

[Cant trust em]

15. I should make an investment in whiskey.

That'll make my financial troubles disappear.

[high density]

10. It's not being given away because credit cards and etc are still charging sky high rates

But everybody with savings accounts, money markets, and the like have been effectively earning negative returns on their money since December. I'm very annoyed.

[Cali_Democrat]

13. I am totally against this

The whole problem with the current credit crisis was that loads of cheap money was floating around the economy and financial institutions were making suspect loans to borrowers who couldn't repay them.

So how do we fix it? By making money even cheaper so that financial institutions can again make loans in order to "stimulate" the economy.

This is putting us even further into debt and lowering the value of the dollar even more. Foreign investors will pull thier money out of the USA because of the low rate of return. That WILL obviously lead to increased inflation. Expect food and gas prices to go up even more.

What a joke.

[Leftist Agitator]

16. This is TERRIBLE news!

Inflation has been so goddamned high for the last few months, and now it's going to get that much worse!

$5.00 per gallon gas anyone?

$4.00 for a dozen eggs?

I hate to even think what's going to happen to energy prices come next winter.

:scared:

[Holly_Hobby]

19. I'm working on our natural gas bill right now

Our contract for $.99 CCF gas expires on 5/31. The cheapest new contract is $1.38 CCF. That's about a 39% increase.

We keep our thermostat set at 60 degrees all winter long. I guess next winter we'll have to put in a wood stove.

[Leftist Agitator]

22. In my last apartment, I had to get a kerosene heater...

Because after one $500 gas bill, that was enough of that. Mind you this was a one-bedroom in WV, in an older building, with no insulation.

Here it is two years later, and the kerosene would be just as much as the natural gas.

By the end of the year, the dollar will have lost 50% of its purchasing power, mark my words.

[Texas Hill Country]

21. at least they announced a pause on bringing down the rates, oil is down $6 over the last few days...

thats good news.