Wednesday, November 4, 2009

Interest rates kept low- Again! (The latest from Fed)

Hey folks-rich and poor, middle class and more, the Feds have decided not tinkle with the interest rates for a while (meaning for the next six weekly meeting unless something urgent comes up, but they can’t go negative. Oh wait they have given free money anyway so the rate is actually negative).

Now we can keep on buying stuff on ultra low rates (if anybody is willing to lend me the money) till the next crisis comes along. Cynical or Sarcasm you decide. These low rates are not benefiting me since the rates on credit cards are not link to it. And neither are the mortgage rates and the car loan rate. They have their own language and criteria to evaluate your creditworthiness. So the free or interest free loan is not for us (you and me) but for the big guys (very). But I understand their concern for the economy and unemployment rate. But they can’t go further than what they have right now, so it is going to up from there in the future, so stay tuned.

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