http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/ Learn, Network, Invest Sat, 11 Feb 2012 23:51:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55412 Rehab702 Wed, 19 Mar 2008 00:12:46 +0000 http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55412 Understand that the $200 Billion was not meant to be a quick fix. It was designed to prevent a total meltdown and collapse of the system and it looks like that part worked. The interest rate cuts are designed to stimulate the economy. That takes time. The other problem is that they are using an expansion of credit to fix a problem that was caused by too much credit in the first place. It’s like trying to cure a broken leg by amputating it! It’s just plain nuts. Politicians are not economists, yet they are trying to manage the economy. Understand that the $200 Billion was not meant to be a quick fix. It was designed to prevent a total meltdown and collapse of the system and it looks like that part worked. The interest rate cuts are designed to stimulate the economy. That takes time. The other problem is that they are using an expansion of credit to fix a problem that was caused by too much credit in the first place. It’s like trying to cure a broken leg by amputating it! It’s just plain nuts. Politicians are not economists, yet they are trying to manage the economy.

]]> http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55411 Gatlinburg Real Estate Wed, 19 Mar 2008 00:01:13 +0000 http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55411 I don't claim to be the smartest person by any stretch, BUT, how can the FED expect to fix an economy that took years to deteriorate with these swift, bold actions. $200 billion pumped into the economy, interest rate cuts, and loan resets. Wouldn't the correct thing to do be to raise the interest rates? There is no quick fix and unfortunately this will have to run its course with improvements made along the way. The government needs to focus on improving the economy and the strength of our dollar and these half-assed, ill throughout decisions are the exact opposite direction that we need to go. Am I missing something??? I don’t claim to be the smartest person by any stretch, BUT, how can the FED expect to fix an economy that took years to deteriorate with these swift, bold actions. $200 billion pumped into the economy, interest rate cuts, and loan resets. Wouldn’t the correct thing to do be to raise the interest rates?
There is no quick fix and unfortunately this will have to run its course with improvements made along the way. The government needs to focus on improving the economy and the strength of our dollar and these half-assed, ill throughout decisions are the exact opposite direction that we need to go. Am I missing something???

]]> http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55398 Heath Coker Tue, 18 Mar 2008 21:12:40 +0000 http://www.biggerpockets.com/renewsblog/2008/03/18/fed-rate-cut-%e2%80%93-the-good-the-bad-the-ugly/#comment-55398 One part of the mix that people aren't talking about is that rates traditionally move down in a presidential election year. This time the drops are tied to all the foreclosure news so the tradition is overlooked. The other thing to think about is that rates also go up in the first year after a presidential election. That will create some more problems if tradition holds. One part of the mix that people aren’t talking about is that rates traditionally move down in a presidential election year. This time the drops are tied to all the foreclosure news so the tradition is overlooked.
The other thing to think about is that rates also go up in the first year after a presidential election. That will create some more problems if tradition holds.

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