Consumers Digest

Whats to think of the Federal's cutting the interest rate again?

What to think of that? More confusing for us the consumer? More digesting over home loan and mortgage rates? Or in the long haul something positive for us?

Public Comments

1. I am pessimistic on the short term: it's merely an attempt to get the economy going by making money more available. But this also does something else if done incorrectly: inflation. A recession is unavoidable. We had one a few years ago, too.
2. Has basically no effect on the mortgage rates as they are not tied to that. Tis a mixed bag as it does lower the worth of our dollar, making exports more affordable, and more competitive, but does raise the price of imports, especially oil. It also has the possibility of inflation raising it's head. Personally think it was a knee jerk reaction to the situation and the Fed should of kept it at .50 instead of .75. What needs to be done the the loosening of credit, not to where it was a few years ago, but better than it is now. That is the only way to save the housing and job market. The bank profits although down, are still profitable, the mindset that was caused by the double digit increases and profit in housing has got to be realized that it was unrealistic and those numbers cannot be sustained. In fact they have not, the mindset of reasonable profits must be returned to the economy, and then we will start to grow again.