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(CNN) NewsFlash Fed cuts interest rates a record-setting 11th time   ( divider line
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3019 clicks; posted to Main » on 11 Dec 2001 at 2:42 PM (16 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

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69 Comments     (+0 »)

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2001-12-11 02:43:51 PM  
2001-12-11 02:44:19 PM  
COOL! Now maybe I can refinance my house.
2001-12-11 02:45:06 PM  
No! Bad economy is good... I Have to buy a house and not sell one :)
2001-12-11 02:45:23 PM  
goddamn reaganomics.....
2001-12-11 02:46:15 PM  
poor Mark Mcguire. he deserved to keep the record. the Fed is such an asshole. i heard he spit on a fan once.
2001-12-11 02:48:35 PM  
This is good if you have to get a loan, but weird, since our money has no basis except the trust of those who use it. If cutting interest rates doesn't work soon, expect to see MASSIVE inflation.
2001-12-11 02:49:37 PM  
they cut the rates any lower, and I'll have to pay the bank interest on my savings..
...of course, if I refinance my mortgage....
2001-12-11 02:51:12 PM  
doo-dah......, doo-dah.......
2001-12-11 02:54:07 PM  
Bling Bling, I'm with 9/10, refinance time.

Though I've only had my mortgage for about 5 months. Heh.
2001-12-11 02:54:55 PM  
I'm not very good at economics so bear with these lower interest rates somehow help the hundreds of thousands of people (both technology and non-technology related) who have been laid off in the last year? They cannot make their house or car payments and are losing them, let alone be able to refinance them.

Banks like people to have a job before they finance them.
2001-12-11 02:56:32 PM  
Frikkin mortgage rates started climbing again, and just stabilized at just above 7%

The bubble must burst before the mortgage rates truly drop to 6% or below. THATs the time to buy/refinance
2001-12-11 02:56:46 PM  
People, wait till rigggggght before Xmas before refinancing ...
2001-12-11 03:01:22 PM  
This is boring
2001-12-11 03:03:21 PM  
So about refinancing....I want to refinance my car. I called the bank I have the loan from, and they said they don't refinance their own loans (what?). Anyway, what's the best way to go about it? Just hit another bank, try to get a loan for the $ I owe and lump pay the other one? Anything I should look out for?
2001-12-11 03:04:13 PM  
feh, I should be refinancing my damned car...
2001-12-11 03:07:53 PM  
kas: go to

Its a big help with stuff like that. He is even on the radio (AM) of you want to call him up.
2001-12-11 03:08:27 PM  
When the $#@! will Visa or Sears be cutting their !$!@ing rates?
2001-12-11 03:08:31 PM  
Mortgage rates have nothing to do with the fed rate cuts.

Mortgage %age points are determined from the bond market.

Kas On a used car, you more than likely aren't going to find a bank to give you a better interest rate (unless the current one is insane.) That said, you could probably get a used car loan for 6ish to 8 percent. Try credit unions. They typically have lower auto loan rates than most banks and only require $25 to start an account if you're not a member.
2001-12-11 03:08:38 PM  
Shouldn't this have had the
img.fark.netView Full Size
2001-12-11 03:11:29 PM  
Prngr44: I bought the car new, if that's a factor.

Thanks for the link Matzug, I'll keep digging around.

2001-12-11 03:11:29 PM  
and yet I still can't get my credit card company to lower my interest rate from 24% perfect. Damn them
2001-12-11 03:15:22 PM  
Hooray for boobies.
2001-12-11 03:19:09 PM  
you gotta wait until pigs start landing on your roof
2001-12-11 03:19:39 PM  
Bah, I bought a 2000 car right after Thanksgiving. Got a flipping 8.5% over 6 years. But I wanted my payments under $200 a month, which I got. Not happy with the 8.5% though.
2001-12-11 03:19:56 PM  
If your paying 24% on your credit card you must have got suckered into that Queen Latifa thing
2001-12-11 03:23:49 PM  
Greenspan sucks. I thought he was against this kind of shiat.
2001-12-11 03:24:19 PM  

24% My god. You need to get a better card and xfer the balance.
2001-12-11 03:28:09 PM  
Kas In the eyes of the lender it's used.

Grivas Call 'em up. I did. I got my rate lowered 2 points to a flat 9.9 fixed. I have decent credit (now) but all you have to do is ask. Worst case, transfer the balance from those cards to a lower interest rate card if you have no fear you won't be denied. (Too many inquiries to your credit report lowers your score.)
2001-12-11 03:30:15 PM  

Have you tried calling the credit card company and telling them you're considering paying off their card with another one? Often, they will offer to lower your current rate.

Also. Dont buy a house when interest rates are low. Usually that means the prices are high. Remember, you can always refinance after the deal is made, you cant renegotiate the selling price.
2001-12-11 03:30:48 PM  
Okay I'm not one of them there accountanticians but doesn't this HAVE to have some adverse effects on the economy down the road?

Also, the banks don't really have to lower their rates at all, and that's what matters to the average consumer, right?


2001-12-11 03:40:44 PM  
Due to the recession, most housing prices are lower than normal right now, and housing starts are WAY off, meaning that as the economy starts to recover, interest rates will be higher, but housing prices higher still, the way I understand it.

I had to get a high-interest credit card when I got back into the credit game, so I put some charges on it, paid it back off, and waited. Within 3 months, I got better offers, and took 2 of them and killed the high interest one. I really only use my 12% card, and try to keep it paid off, even at that (it's for shopping on the net). The main thing is to try to avoid credit, or at least see it for what it is, spending money you don't have, in many cases. Although the "low monthly payment" may not hurt that much each time, it's compounded, so you really end up paying out the arse in the long run.
2001-12-11 03:44:28 PM  
Can we say LIQUIDITY TRAP????
2001-12-11 03:44:34 PM  
Yes... and no. The reason they cut the rates is because a recession causes people with the money to stop spending money, causing a downward spiral (or that's the theory, and we've used it for a hundred years). So, the feds cut the interest rate, attempting to encourage new growth, and increase consumer & corporate spending, allowing the inflation cycle to continue.
Wash, rinse, repeat infinitum.
2001-12-11 03:49:20 PM  
Doctor: But doesn't the money from the interest go somewhere? What will happen when the money usually generated by those interest rates disappears? Exactly who's pocket does that come out of and won't that hurt the economy?
2001-12-11 03:56:53 PM  
Mostly we want corporate spending to go up. With lower rates, corporations are more willing to invest in, say, tht new building down the block, which will help bring in more jobs for people. Consumer spending is helpful, but it's got nowhere near the impact that corporate spending does.
2001-12-11 03:58:01 PM  
Thing is Japan's version of the Fed has lowered its prime rate to 0.10 percent and they are still stuck in eternal recession.

But Japan has a LOT of bad loans sitting around. Imagine a 40-year version of the dot-com bubble going *pop* ...

2001-12-11 03:58:36 PM  
I bought a new car about 3 weeks ago. got 2.9% financing over 60 months and threw my other car loan under the 2.9% too.

Got to love desperate car dealers.
2001-12-11 04:04:05 PM  
Migettossa: the interest rate charged by banks to customers is different than the rate which the Fed just cut. The Fed reduced the interbank loan rate, the rate at which banks make loans to each other. The idea is that with the cheap cost of borrowing, firms and big-time corporations will have an incentive to borrow and thus spur economic growth. You and I are in another class all together when it comes to interest rates and our banks. We get shat upon.
2001-12-11 04:04:51 PM  
"I want to have sex with sharon stone or somebody" - 1996 nat'l champ Craig Assemacher.
2001-12-11 04:06:08 PM  
Roselea, I would check out Bank America's website. They offered me 8.99% on my balance transfer which is FIXED UNTIL IT'S PAID OFF! Awesome deal. Plus, they also allow payments over the net so you don't have to waste a check and precious stamps.
2001-12-11 04:08:47 PM  
Doctor & FuManshu: Thanks guys, just had to make sure I don't give a shiat about this crap.
2001-12-11 04:14:05 PM  
Quick1: Consumer spending makes up two-thirds of the U.S. GDP, so its impact is much greater, in that sense, than that of corporate spending.

The slowdown this year was started by a slowdown in corporate spending, but consumer spending held up, keeping a recession at bay. Then 9/11 put a dent in consumer spending and triggered a recession.

Now, you can argue that increased corporate spending leads to hiring workers, etc., and you may be right. But, then again, if consumers don't want to buy companies' products, then companies won't spend money to increase production.

It's all a big circle-jerk.
2001-12-11 04:17:21 PM  
Cutting of Taliban's collective lifespan would be enough for me.
2001-12-11 04:20:15 PM  
2001-12-11 04:22:51 PM  
Feds cut interest rates - France surrenders.
2001-12-11 04:24:02 PM  
I'll soon have even MORE telemarketers calling me in the evening telling me they can give me a better deal on my mortgage. They never can.
2001-12-11 04:36:36 PM  
Rosalea 24% good lord. I have like 1/2 of that. When I was fresh out of high school I had 18%. And I'm with Bank of Amafia.

I would do some shopping around if I were you.
2001-12-11 04:52:26 PM  
Look, it just goes to show that you can lead a horse to water but you can't saddle a duck.
2001-12-11 05:06:42 PM  
NO NO NO I see NO advantages to this to MY wallet whatsoever. Loan/home rates are NOT coming down any.
2001-12-11 05:12:27 PM  
Woohoo!!!!! This is great for me the wife and I are house shopping anyway. At this rate the interest rate on my mortgage will be lower than the interest on my car loan hehe.
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