rwbeagles-so anyone think this interest rate cut will help?

 i always thought that when the interest rate was lowered inflation went up because of the devaluing of the dollar? i dont see how it will help an ailing economy to make our inflation rate increase. personally my buying power is at an all time low as is.

i am worried that if the trend continues much longer, we may be in jeopardy of losing our house. 

cyclefiend2000

i am worried that if the trend continues much longer, we may be in jeopardy of losing our house. 

Oh, I truly hope that's not the case. I have yet to see the rate cuts help much at all. It's hard to imagine that this one will make a big difference.

We've owned our home since 2001, so we're not in any danger of losing it and if long term rates drop even more, then we might want to consider refinancing.  I just hate to start over with a 30 yr loan again. I might be dreaming, but I'd like to think it'll actually be paid off some day.

Sadly, any investments we have are looking very pathetic right now, so retirement may be pushed back unless things turn around in the next year or so

aww Bradley that sucks...I am sorry. Can you not also refinance to lower your payment?

I heard tell of the Tax rebate as well....which could be as much as $1600 for marrieds....that might stimulate things if they sent one WEEKLY...lol.

cakana

Sadly, any investments we have are looking very pathetic right now, so retirement may be pushed back unless things turn around in the next year or so

Yes the stocks...OY! It's like post 9/11....I still to this day kick myself for not buying that SWA stock...I should have...it was so so low then...but now yes...the market is well, abyssmal once again...*sigh*

I don't know how the value of the dollar thing works. I will have to chat with DH about it tonight. He does commercial loan servicing so I wonder if the commercial companies will start asking for more money...now that the rate is favorable...or simply defaulting more lol.

rwbeagles

Yes the stocks...OY! It's like post 9/11....I still to this day kick myself for not buying that SWA stock...I should have...it was so so low then...but now yes...the market is well, abyssmal once again...*sigh*

Ooohh, I wanted to buy SWA right after 9/11 too but never did. Typically, a stock that's doing really well will tank when I buy it anyway . I'm a big believer in investments and specifically the stock market, but lately I'm thinking that stashing my savings under the mattress wouldn't be such a bad idea. Of course, it's a little late now and the optimist in me continues to believe it'll all turn around.

One of our news stations did a poll on what people would do if they got a tax rebate and only 14% said they'd spend it. The rest said they'd pay bills or save it. I feel the same way but unless folks go out and spend the money, it won't do much to help the economy. Guess it makes the politicians look like Santa Claus tho

Oh yes. Our normal tax refund is usually applied to debt...so I think we'd spend our...or at least I'd spend my half LOL!

Dang....talking about that SWA stock has me so kicking myself...*sigh8 I have never bought a single stock in my life...ever. It scares me, and intimidates me, the stock market.

I don't understand the stock market either and for that reason I'd never play around with a good sized amound of money.  I did invest a huge amount in ... something, I forget what ... but I did it through Wells Fargo Bank. I agreed to it only because since it's through the bank it's FDIC insured and the worst thing that can happen is  that it won't earn anything, but I won't lose my initial investment amount. I'd never risk losing a large amount of money. I won't even buy the $5 lottery tickets. Plus, I have it in writing that if I were to have some sort of major emergency, there wouldn't be any penalty for getting it all back out.

Joyce

All I can say is this too shall pass.  The market and economy's nature is to have ups and downs, it's the way the system works.  Best not to get too worried and fret over it.  Half of the problems you are seeing are reaction to all the hype in the news.  Kind of becomes a self fulfilling prediction.  Remember 2000, 1992, 1987.  Things go in cycles.

A big part of the mortgage crisis is because people got in over their heads.  Home values went up so people re-financed and pulled all the equity out of their homes and spent the equity, that fueled the home values to rise even more, and so on and so on.  People speculated that they could make a quick buck with a investment in the home market based on rapidly rising prices and got stuck when the value went down.  It has always been taught that property is a long term investment.  You need to be willing and financially able to sit on that investment for 10 to 20 years before gettting a return.  Well anyone that has taken economics 101 knows that things can't keep going up forever there has to be a correction.  The other big problem is that people got loans for amounts that they just shouldn't have qualified for.  For awhile there you could get a loan if you were breathing.   With the 100% interest loans and the low short term ARM loans the lending institutions are at fault for giving those loans and the people are at fault for not really being honest with their finances.  This too shall pass as things correct itself. 

This is just like 2000 and the internet bubble.  The market will correct inself.

 we actually got our house while interest rates were still really low, and we have a fixed rate. which is all good. right now what is killing us is the fact that neither of us has had a raise in quite a while. my wife is due to get a small raise this year, but no idea when/if i will get one. add to that our taxes have been reassessed every year so far and have went up up up. this also causes the insurance to go up.

so... no raise + higher taxes + higher insurance + higher cost of living = we might be in trouble. 

the quote from the news last night "the middle class is dying" i believe is 100% on the money. especially if you are on the lower end of the middle class spectrum. if hillary could bring us the prosperity we enjoyed when bill was prez... i would vote for her in a split second.  

timsdat

   With the 100% interest loans and the low short term ARM loans the lending institutions are at fault for giving those loans and the people are at fault for not really being honest with their finances. 

I blame the lenders 100% for this.  I think a lot of them talked people into loans that they (lenders) knew they wouldn't be able to afford down the road.  As for people not being honest, a lender can run your social and within 5 minutes have your whole lifetime of financial information at their fingertips. They had to have been able to see that a lot of these borrowers would wind up in foreclosure in a few years.

Joyce

Just remember that the government can only do so much to effect the economy to the positive side.  They can have a big negative effect by raising taxes on corporations and the investment class of people that fuel capitol spending in companies.  Usually government fiscal policy takes 4 to 6 years positively affect the economy.  If you want a strong economy you can't be anti-business even large business.  Higher taxes at every level of income really hurt the economy.  People keep saying to tax the rich more (which includes businesses) but guess what, when you do that they cut spending which equates to job loses and personnel  raises and raise prices on products which fuels inflation.

fuzzy_dogs_mom

I blame the lenders 100% for this.  I think a lot of them talked people into loans that they (lenders) knew they wouldn't be able to afford down the road.

Sorry but I don't agree.  Nobody held a gun to these peoples heads to seek out and sign these loans.  There has to be some personal responsibility here.  Most of the time it was based on greed of wanting the bigger house or doing the quick turn on a piece of property to make the quick buck or having more money in their pocket to buy more stuff.

I agree. People here "must" live in a certain zip code or development...they "must" have x number of square feet or a "new build" home....etc. These aren't ignorant people, for the most part at least here...they are educated white collar folks making stupid decisions.

ETA: it is common here in the cushier zips for people to have huge, EMPTY homes and rented furniture in a few visible rooms...to further the illusion. That to me...is incredibly sad.

timsdat

Just remember that the government can only do so much to effect the economy to the positive side

The Federal Reserve Bank (aka "the Fed";) is totally separate and independent of the US government.  They control the currency.  The government does not.

timsdat

Higher taxes at every level of income really hurt the economy.  People keep saying to tax the rich more (which includes businesses) but guess what, when you do that they cut spending which equates to job loses and personnel  raises and raise prices on products which fuels inflation.

 Agreed.  It's the opposite of subsidization.  If the government says "if you let me see that you've got "X" amount of money, I'll tax you on it.  But then the government provides a loophole so that the corporation can hide that "X" amount of money so it appears that they've really got "X-75%" then the real net is a tax revenue loss.

 Taxes are a game of semantics and a "shell" game.   Everyone, even the government knows that the big corporations are making money hand over fist, but they can't tax those corporations (or rich individuals) correctly because of the  loopholes that allow those moneys not to show on paper.