Wednesday, December 17, 2008

Fed Rate Cut Does Not Matter to the Average


The fed's just cut the interest rate again. This time to 0% - .25%. After thinking about this and waddling in ignorance I have the following questions:

How does this help the average man/woman who may have a ding on their credit report? I ask because people are applying for loans - but they are getting denied because of a ding that is the result of a bad economy e.g. job lost, one late payment, salaries lowered, etc.

Seems to me that if the idea is to help the average man/woman (there are more of these folk in America), how do the federal government expect for them to get ahead or reestablish if they cannot secure the much needed loans e.g. home re-finance loans, first time home buyer loans, business loans, modest car loans, etc. to jump start their efforts to get back on their feet?

Who is really benefiting in this new 'socialist' economy? It ain't the car workers in Detroit. It ain't the men/women who have been unemployed for months/years. It ain't those who are looking to purchase a home: they (the American people owned banks) want 20% down and a 750 plus credit score. Who has that
topnotch FICO score today among the average folk I have discussed?

http://www.myfico.com/CreditEducation/CreditScores.aspx

Written by Brian E. Payne. Inspired by a citizen who is part owner of the banks that refuse to give him and other Americans loans.

12 comments:

Muata said...

Reader LS responds:

the problem is that there has been no new economic theories taught in the last 20 years. Paul Volker received death threats way back in the day when he was the FED chair because he woudn't raise rates. Then along came Greenspan and his market economic false assumptions and everytime there was a lil stagnation he cut the rate. This resulted in the issue we have now. People didn't change a thing when the economy slowed. It's like giving a person who has no budget skills a million dollars. They will eventually be back to sqaure one if they don't change to fundamentals of what they do.

See the info below. I have been saying that lowering the rate and printing more money to loan to these banks and whoever else is crying is cause hyperinflation and will devalue the dollar so much that it could get much worse. If you don't believve me listen to Schiff.

Enjoy

Who - Peter Schiff discusses the economic crisis on Bloomberg in this3 part series. the third part is the most informative as the first 2parts setup how we came into this crisis.

Why - Discusses why his strategies dont appear to be working due to a
temporary shift into US Dollars, the coming hyperinflation as shown by what happened to Iceland and the coming of age of Asian Equities, Currency.

What - Gives insight as to how to react to the current crisis and what to do in the coming years. He also thinks housing has ways to drop and foreclosure prices are the true market of how much a house is really
worth.

http://www.youtube.com/watch?v=W32HSaAmkck&feature=related

Muata said...

Muata responds to LS:

Thanks for the thorough response. Thanks for providing a resource too.

-Muata

Muata said...

Reader LS responds to Muata:

no problem. its way more appealing to discuss this than a lot of the other stuff. I think both are equally useful. One conversation is about personal mental development and this speaks to fiscal and financial literacy. Let's see if people reply.

-LS

Muata said...

Muata responds to LS:

Still no response from folk. I should chatted about Michael Vick.

-Muata

Muata said...

Reader LS responds:

Cmon people you must have an opinion on this matter. I am sure many of you are busy but it saddens me that no one responds to a non-emotional quasi-socioeconomic issue. There are other important topics beyond race, Michael(so stupid) Vick and Plaxico(almost shot my leg off) Burress.

Everyone is affected by this in some manner. I personally have felt the losses in 401k and in property value. I advise anyone to dump the american dollar and buy gold. I would suggest you buy it in gold bars. I think it's trading around 750 per ounce. If you can't buy physical gold put your money in GLD etf.

I also think that Ford will survive this crisis the over the other three and will be a great buy. The time to get educated and financially literate now. At this point in your lives its the best time to position yourself for long term wealth. One way is getting all of your money out of currency and into GOLD. Another way is dumpin even more money into your 401k because once the decline is over you will have more market shares and if the market goes back to at least 50% of what is has been in the last few years you can really make a lot of money. There are several other methods. But they are all long term strategies. My investment group is starting a website soon that will help others with investment advice. Be on the look out.

-LS

Muata said...

Reader TM responds:

A lot of people can't speak intelligently about the markets & economy- so they remain silent. They comment on what they know...relationships, race, religion, gossip, etc. Y'all putting folks on the spot...

-TM

Muata said...

Reader LS responds to TM:

I think most people can't speak intelligently about many of the other issues either. i think it's usually emotionally driven responses. One person argued with me about a magazine cover that she had not even read the article on. That is not an educated response either. I did not intend to put people on the spot. I just wanted to create dialogue about something that should matter more to us than some of the other social issue. The fed is killing the dollar and its risking national security as well as our kids future. There is a social aspect to it all that should entice people to want to speak out.

I was so hopeful when Brian posted the initial comment.

-LS

Muata said...

Muata responds to LS and TM:

let's face it, it is easier for us to respond from deep-seated emotion. which in my opinion carries no weight whatsoever especially if it is one-sided. it is simple to me: we chat about relationships when we all are failurers in that category. we talk about religion from a disposition of unrelenting and irresponsible faith and ignorance. we talk about race relations because it is an ongoing issue that's in our face, and with the race talk we are able to position our comments as 'i know because i am black'. but, when it comes to financial literacy NO ONE speaks. also, i sent this to robert who is a business man. i sent it to tunisia who is an investment vice president for a bank (called ya out, t). i sent this to eric who is a former stock broker. i sent this to a couple of other people who have investments. tomorrow i will send an email about how silly i think keysha coles is for spending so much of her loot on family members. watch the response. when we have an opportunity to educate we become closed lipped! unacceptable to me. keep in mind that the impetus for my email was strategic: i wanted a platform of financial education to transpire. nothing more.

-Muata

Muata said...

TM responds to Muata:

Many folks don't understand the effects of the weakened dollar- or "why we can't just print more money..." Right Brian? So- they don't respond. They want to talk about Akon's court case! LOL!!!

-TM

Muata said...

Muata responds to TM:

i say print more loot. you got me.
but, i do know about the weak dollar.

-Muata

Muata said...

Reader TM responds:

People are stressed & depressed. Shyt is f- up...no one wants to talk about finances. We engage on subjects we are passionate about or can have impact on. And again, a lot of people just can't comment because they don't what to say. "Either they don't know; it don't show; or they don't care about what's going on in da hood"... LS- u just smart. Why didn't I comment? Tired. I deal w/ this all day every day. It's the same reason I come home & watch General Hospital instead of World News Tonight. Frivolous is fun. And we need an escape. Taking a break from work to talk about Keisha Cole's middle-aged crack head mom walking around in some high top Jordan's is a relief! Where is she going in those shoes anyway??? LOL!
Perhaps another day...

-TM

Muata said...

Muata responds again:

one last comment from me:

the banks who are denying the loans to regular americans seem to be forgetting that the regular american is part owner of the bank. will not even help out its owners. disturbing.

-Muata