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As many of you know, the Federal Reserve has been meeting quite a bit these days.

I don't agree that cutting interest rates is helpful. I believe the general public is more inclined to save than spend during these times of economic downturns. It's unfortunate that saving is shunned by our current administration. It seems quite naive to believe the people can help prop up the economy. Not now. Look at us.

Mortgage crisis
Overdrawn credit card debt
High unemployment
Companies cutting jobs
Companies cutting hours for contract workers
Jobs heading out of the country
International food crisis

A general and quick leveling worldwide. The power shift at work. Yin and Yang working it's natural path to balance in an exorbiting out-of-balance world economy.

Lower interest rates for loans isn't going to help us. We're staying put. We can't even feel good about saving, the interest rates are lower.

Comments

( 2 comments — Leave a comment )
pipetti
Jul. 4th, 2008 04:30 am (UTC)
Yes, I have been hearing people say that the lowering of prime is not going to fix things, and they keep doing it anyway. Seems to me that is only helpful to people that have plenty of cash flow going on for investment purposes, who maybe for now think it's advantageous, but it's not going to help our short-term or long-term economy in a way that helps working people, that i can tell.

Also I know both leading candidates now are talking about change, and hope and blah blah. I want to believe that whomever wins will do good stuff but i have this sinking feeling that global terrorism and our domestic economy and other problems will, at best, be exactly the same a year from now (if were' lucky) no matter who wins. ANd I totally hope I'm wrong about that.

What do you think?
lost_tumbleweed
Jul. 4th, 2008 10:38 am (UTC)
I wrote this not too long ago, and have other ideas on the issue.
All the problems we have currently, have been building for a long time. It is inevitable that we will fall.

Though I still believe what I wrote originally, we may be having a more gradual, softer landing as we fall because the FRB continued to cut interest rates. Yes, it doesn't help savers, but it helps all those in debt.

We never would have needed to do this if our government and corporations weren't so greedy and irresponsible.

On where we could be a year from now ... or a bit longer ... say two years ... we could be in the same place we are today. The economy is a monolithic mess. It's going to take years for recovery.

Global terrorism is going to be no matter what's done.

I'm a fatalist. I wish I wasn't, but I am.
( 2 comments — Leave a comment )

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