Posted on 10/08/2008 4:20:37 AM PDT by TigerLikesRooster
World's leading economies -- led by U.S. Federal Reserve and European Central Bank -- announce half point cut in interest rates.
(Excerpt) Read more at edition.cnn.com ...
“Negative interest rates? Has that ever happened? How would that work?”
They can slightly negative if people are willing to pay a small fee to the government to keep their money. For example they could buy $1million face value of T-bills for $1.001 million. You can Google “negative interest rates japan”. However, nominal rates cannot get seriously negative because people can just stuff money in mattresses and safe-deposit boxes and “earn” 0%.
Of course *real* (after inflation) interest rates can be quite negative, as they are now with Fed Funds at 1.5%.
What the numbers nationally if you can find them on states' fairs, retail, etc.
CA is leading the way with their $15 billion budget crisis.
This is just the tip of the iceberg....in the meantime...let's keep giving handouts to all the illegals.
I have to agree with you. Gooobermints cannot control natural disasters, financial markets manipulations, corruption greed, deceit, and 'those 2 neighbors starting' a war.
Therefore, sitting on some savings, living within one's on means is practical....too bad the idiots in Congress and Wall St. can't comprehend those virtues.
they don’t seem to have a lasting affect.
They don’t because they’re only a small part of the overall investing formula.
well, they did a good job of crushing an up day on Wall Street. The futures were up about 178 points until this announcement. Now they are only 40 points up and heading down.
When banks aren’t lending to each other and LIBOR is going up, then money isn’t easy. Also, higher spreads mean that lower interest rates weren’t making it down to consumers and businesses either.
Good. Should have been done a week ago. And should be more.
Then the President goes to Congress and announces together with the enemies there - so they can get some credit - a massive tax cut for businesses, individuals, effective immediately.
THIS WEEK!
The Fed is so stupid. Band aid on an aneurysm.
Ping!
Gasoline on the fire.
re #31....DOW down -198...yeah way to move dudes.
At 8AM Dow Futures were DOWN -193. So where’s the beef in this rate cut? Guess it ain’t goona work or it will make things even worse.
THIS WEEK!
Will this spur banks to lend again and end the credit crisis?
This could be Warp 9 crash alright.
ping and see post #4 for now it will affect you and I.
Saving is great, when one has a job and the means to save...I think that’s the concern here.
No solution will make everyone happy. Leave it alone, and you face companies not making payroll due to freezing of short-term credit (which the rate cut may only mitigate slightly)...
Unemployed people don’t save ANYTHING!
The Fed has thrown everything at this but the kitchen sink and, so far, it hasn't stopped the slide. I know there is an answer even now and I hope they find it and soon!
That’s never been what I’ve been taught.
I’ve been better lately but admit that most of my 20s (I’m 31 now) I spent too much and saved too little. However, I think I learned the lesson early enough to right the ship.
However, today, I, like many Americans, am more concerned about my ability to remain employed at the moment than whether I earn 3% or 6% on a CD.
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