Bernanke drops Fed Rate by 3.5 basis points

Discussion in 'Politics' started by Gravity, Mar 18, 2008.

  1. Gravity

    Gravity #winning

    horaaaaaaaaaaaay hyperinflation.
  2. Pressed_Rat

    Pressed_Rat Do you even lift, bruh?

    The rate was cut by 75 basis points (3/4 of a percentage point) -- 25 basis points below the full point that was expected.

    But at least the overvalued stocks can go back up for another couple days, which will no doubt appease all the yuppies, who don't even know what inflation is.
  3. Paul1968

    Paul1968 Banned

    Yes, this will further weaken the dollar and result in higher oil prices (up $3 a barrel to $109 today). Only bright side is someone looking to buy a house will get a great mortgage rate and a lower price.
  4. hippiehillbilly

    hippiehillbilly the old asshole

    lol yeah, the banks are just handing out loans left and right...

    gonna be real hard to make them house payments when a loaf of bread costs 50 bucks,,if you can find one...

    T minus 160 days and counting..(more or less)

    houston,we have a problem...
  5. acga5

    acga5 Senior Member

    well if you look at the reality of the situation instead of your doom and gloom scenarios you will see that inflation is actually up only 3.7%(including food and energy) from feb 07, and farmers are now able to sell their products for more money which increases the amount they are willing to supply, so I doubt we will have a shortage of bread, and now that the fed has offered to put up 400b for the banks and they can use their sub prime loans as collateral, so the risk is pretty much on the fed so they have no reason not to loan, if you didn't get greedy and still have a resonable credit score it shouldn't be difficult to get a loan, and yes we are going to have 2000% inflation in sixmonths lol
  6. Piney

    Piney Lifetime Supporter Lifetime Supporter

    Interest rates on home mortgage loans will go up when inflation hits.

    When I was first working back when President Carter was in office, a regular
    vanilla FNMA rate was 11 or 12 percent. this was about 1979. It held the price of housing down.

    When Chairman Volker started boosting the fed rate mortgage rates dropped.

    The Fed can always push rates back up when it neds to.
  7. acga5

    acga5 Senior Member

    well i assume you are talking about cost push inflation, but if inflation hits, and interest rates go up, and then the fed increases rates, this will cause another bursting the housing sector bubble lol
  8. Ozone

    Ozone Member

    i don't give a fuck.
  9. gardener

    gardener Realistic Humanist

    There is no more housing sector bubble, the air has gone out of it already. Or do you think the Fed has been puffing air back in it all along. Greedy speculators have moved their funds to petroleum stocks.
  10. gaiabee

    gaiabee Member

    Nope... this interest rate decrease doesn't effect fixed interest rate mortgages... only those with an ARM (those who had subprime mortgages had ARM). As someone above mentioned, this will actually hurt a lot of homeowners because of the inevitable inflation.
  11. acga5

    acga5 Senior Member

    explain how inflation is inevitable
  12. gaiabee

    gaiabee Member

    because the feds have already indicated that inflation has elevated

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