Rate Cut

Ibredd, Management of fiscal policy is one of the most difficult. Damned if you do, and damned if you don't. Most of the pundits are saying they are disappointed, because the feds didn't reduce it by 50 basis points. Lowering interest rate that is already too low will not help the economy. Mortgages and car loans are already low; you can't keep selling autos when more and more people are losing their jobs. Real estate prices are already too high, but people think it's a safer investment than the stock market which have lost ground during the past three years. We are now all floating on a balloon that's full of air. It's only a matter of time before we see it burst with a big bang. When that happens, more people are going to opt for the one percent interest on their CD's and treasury bonds that will at least not lose its principal. Anybody ready for another 30 percent loss in the stock market this year? Here's the real math; if most people lost 30 percent last year (and the average investor did), the market must gain 85 percent to get back that 30 percent loss. That's just not going to happen. That's the reason we are heavily weighted toward bonds, cash, and annuities. c.i.

the FED has thrown everything but the kitchen sink at the economy, todays prime cut is the kitchen sink.

That's about it, dys. They're hoping on hope that something will happen during the last half of this year. Nevva hoppen as long as companies continue to lay off workers by the hundreds and thousands, we continue to see more "sales" at retail outlets, and credit card interest rates remain above ten percent. They can bleed a turnip just so much. c.i.

Then, they go for the jugular!