People are predicting that Fed Chief Ben Bernake will cut rates next week when they meet again.
He's insinuated that something drastic needs to be done, do you think he'll drop the rate by another 1/8 or 1/2 point? Or do you think it needs to be more dramatic to see a change in consumer spending?
The last time the Feds dropped the Bank Rate, the Banks saw a little help but didn't help the consumer too much, nothing really changed for us the Consumer.
Do you think people will start buying homes or spending money on say entertainment, shopping etc... if The Feds were to lets say drop the rate by maybe a "Whole Point"? I found it hard to believe that if they were to drop rates and bring them back to what they used to be in say 2004 and 2005 that the "Whole Country" would crash and burn.
This new "Emergency Surplus" they have in mind of doing is only about $800 a family. what happens when the $800 is gone, which in most cases are gone in less than a week, with gas going up and groceries. They basically gave money for less than a month, to help out the travel industry, stores like Walmart, Shopping malls, but after that month is over then what? What are we supposed to do?
Recession is inevitable if something isn't done, not a band-aid, but a real solution.
Friday, January 18, 2008
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