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FED rate cut

Old 12-16-2008, 04:41 PM
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Default FED rate cut

History was made today as the rate is now 0-.25%. The market jumped up after the news and made me happy and helped me out as the stock I've been getting in and out of jumped up right after, starting at 2:20pm. My too-simple, one stock swing-trading strategy since the end of October has been working fabulously and I'm thrilled with the continued volatility and ups and downs day in and day out.

What might it do for you?
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Old 12-17-2008, 03:56 AM
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My prime minus .75% HELOC is benefitting. I had been making payments substantially higher than minimum but have reallocated the excess to other debt at higher rates. Can't believe my 4.625% first mortgage looks high right now.
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Old 12-17-2008, 04:21 AM
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Would it be beneficial to talk to the bank for a possible refi on my 5.75% 15yr mortgage or is that not what it means when they cut rates? I probably need a tuturial for all this....wrong site. Better off on the water than in a bank
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Old 12-17-2008, 04:44 AM
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I looked at my Credit Union's site this morning and their 15 yr rates were 4.875% with 0 points, 4.625% with 1 point. The key question about refinancing is how long you plan to stay in the house. You need to determine the cost to refinance and the reduction in your monthly P & I payment. Then determine how many months it will take to offset the cost. That is roughly your break even time. I say roughly because there are some other factors to take into account, but this will be close enough to make the decision.

The other factors would include whether you are financing the cost into the new mortgage or paying them directly, what you maight have earned on the money you pay for the costs, differences in tax deductions, etc. These won't have a major effect on the decision, however.
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Old 12-17-2008, 09:46 AM
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Default Re: FED rate cut

I guess two things pop into my mind.
1) isn't this how we wound up in this situation in the first place? (artificially cheap money)
2) if this does not work, were do they go from here? negative rates? are they going to pay me to borrow money?

Still opposed to fiat currency and a government set rate. please bring back the free market!
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Old 12-17-2008, 10:44 AM
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bsmit24 - 12/17/2008 12:46 PM

I guess two things pop into my mind.
1) isn't this how we wound up in this situation in the first place? (artificially cheap money)
2) if this does not work, were do they go from here? negative rates? are they going to pay me to borrow money?

Still opposed to fiat currency and a government set rate. please bring back the free market!
i was thinking the exact same thing when i read the story last night.

let's see here...the last time we made money really cheap, you greedy bastards figured out innumerable ways to scam investors and "government watchdogs" out of a trillion dollars. so, we need to do something really drastic to fix the mess you all have put us in.

hmmmm...i know! we'll make money even cheaper!!! cheapest it has EVER been!!! ya'll just need to promise to not get too greedy and eff over the investors again. do you promise?

and we mean really, REALLY promise? no crossing your fingers now!



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Old 12-17-2008, 01:53 PM
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happyjack92 - 12/17/2008 1:44 PM

bsmit24 - 12/17/2008 12:46 PM

I guess two things pop into my mind.
1) isn't this how we wound up in this situation in the first place? (artificially cheap money)
2) if this does not work, were do they go from here? negative rates? are they going to pay me to borrow money?

Still opposed to fiat currency and a government set rate. please bring back the free market!

i was thinking the exact same thing when i read the story last night.

let's see here...the last time we made money really cheap, you greedy bastards figured out innumerable ways to scam investors and "government watchdogs" out of a trillion dollars. so, we need to do something really drastic to fix the mess you all have put us in.

hmmmm...i know! we'll make money even cheaper!!! cheapest it has EVER been!!! ya'll just need to promise to not get too greedy and eff over the investors again. do you promise?

and we mean really, REALLY promise? no crossing your fingers now!



Hopefully the difference will be that cheap money is made available to those who can actually afford to pay it back.

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Old 12-17-2008, 02:03 PM
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Default Re: FED rate cut

bsmit24 - 12/18/2008 1:46 AM

I guess two things pop into my mind.
1) isn't this how we wound up in this situation in the first place? (artificially cheap money)
2) if this does not work, were do they go from here? negative rates? are they going to pay me to borrow money?

Still opposed to fiat currency and a government set rate. please bring back the free market!

This exactly where Japan was 10-years AFTER their economy collapsed. It's where we are now, and the worst is still to come.

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Old 12-17-2008, 02:12 PM
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Default Re: FED rate cut

Eyeball - 12/17/2008 1:03 PM

bsmit24 - 12/18/2008 1:46 AM

I guess two things pop into my mind.
1) isn't this how we wound up in this situation in the first place? (artificially cheap money)
2) if this does not work, were do they go from here? negative rates? are they going to pay me to borrow money?

Still opposed to fiat currency and a government set rate. please bring back the free market!

This exactly where Japan was 10-years AFTER their economy collapsed. It's where we are now, and the worst is still to come.
That is my thought too. It will get worse before it gets better and there is nothing left to do if the rates are already at 0. Although, according to some because of inflation and the devaluation of the dollar the actual interest rate is in double digits.
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