MrWhite Posted December 12, 2007 Share Posted December 12, 2007 http://www.federalreserve.gov/newsevents/p...y/20071211a.htm The Federal Open Market Committee decided today to lower its target for the federal funds rate 25 basis points to 4-1/4 percent. Incoming information suggests that economic growth is slowing, reflecting the intensification of the housing correction and some softening in business and consumer spending. Moreover, strains in financial markets have increased in recent weeks. Today?s action, combined with the policy actions taken earlier, should help promote moderate growth over time. Now that I've graduated and have a steady flow of income, I'm slowly turning into a finance geek, and pay attention to announcements like these. Most of my money is in liquid savings, so rate cuts like we've seen over the last few months do me more harm than good. The seemingly last vehicle for high yields and liquidity are these Reward Checking accounts that are popping up throughout the country at local credit unions. There's one here in South Florida that I've recently opened, which gives you an APY of 6.01% each month with a few strings attached (You have to use their debit card for 12 transactions each month, pay 3 bills a month with their service, and receive online statements). Hopefully they will keep their rates up amidst these announcements. There doesn't appear to be any financial-based thread on this board, so I figured this could become a thread to discuss any future news, as well as any personal financial discussion (Savings, Credit Cards, 401(k)s, etc.) Quote Link to comment Share on other sites More sharing options...
Lefty Posted December 12, 2007 Share Posted December 12, 2007 I keep hearing that it's too little, too late. I've been learning more about the subprime mortgage disaster, and I realize now that no matter what the Fed does, we can't really control the upcoming recession if the LIBOR is steady. Quote Link to comment Share on other sites More sharing options...
EricWiener Posted December 12, 2007 Share Posted December 12, 2007 I personally feel this is an error. We need to shorten the money supply (slowly) and keep the next recession short (like the previous two) Quote Link to comment Share on other sites More sharing options...
Tee Ball Bunt Machine Posted December 12, 2007 Share Posted December 12, 2007 I just wish the whole culture of financial elites would stop believing that more inflation can cure any of our problems. I personally feel this is an error. We need to shorten the money supply (slowly) and keep the next recession short (like the previous two) I'd be happy if they just stopped increasing the money supply. Quote Link to comment Share on other sites More sharing options...
MrWhite Posted December 13, 2007 Author Share Posted December 13, 2007 In Alan Greenspan's new book, he suggests that the Fed will have to raise interest rates into the double digits in the foreseeable future to fight off inflation. Let's hope it never comes to that. My fiancee and I have been keeping an eye on housing prices here in the area over the last 6 months, and it's amazing how hard this credit crunch has hit. The last report I saw had the housing surplus at 24(!) months, we'll be looking to buy at around the 18-24 month mark when prices have bottomed out. Quote Link to comment Share on other sites More sharing options...
EricWiener Posted December 13, 2007 Share Posted December 13, 2007 I just wish the whole culture of financial elites would stop believing that more inflation can cure any of our problems. Productivity should help keep inflation in check, but not if we keep issuing more cash. Quote Link to comment Share on other sites More sharing options...
Hotcorner Posted December 13, 2007 Share Posted December 13, 2007 I keep hearing that it's too little, too late. I've been learning more about the subprime mortgage disaster Yeah, I work knee-deep in it. Fortunately I survived when our company had mass layoffs.... :o I really cannot fathom how the leaders of this industry could have been so short-sighted over the past decade. Although there's plenty of blame to be tossed around on all sides. In Alan Greenspan's new book, he suggests that the Fed will have to raise interest rates into the double digits in the foreseeable future to fight off inflation. Let's hope it never comes to that. Did he happen to mention in his book about all the praise he had for the "creative lending" practices that helped bring about this mess? Quote Link to comment Share on other sites More sharing options...
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