Fed cuts interest rate
Okay, somebody tell why this might not be a good thing. It seems if I have a ton of money and do something foolish and greedy like lend the money to people who I know have a high chance of default, bailing me out removes any risk doesn’t it? Without risk then why won’t I do the same thing again?
At the same time as the Fed is lowing interest rates, oil prices are going up into record territory. A barrel of light sweet crude is over $82 per barrel. I’m starting to get a headache trying to figure out what’s happening. It appears to me that the rich are getting richer.
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From WaPo:
The Federal Reserve cut a key interest rate yesterday in an aggressive attempt to keep turmoil in financial markets from damaging the overall U.S. economy.
The central bank’s policymaking committee cut the federal funds rate, which determines what banks pay to borrow money from each other overnight, by half a percentage point, to 4.75 percent. The rate cut, the first in four years, will eventually lead to lower borrowing costs for consumers and businesses, making it cheaper to take out a car loan or home mortgage or to invest in a business. (more…)
