buy or sell?
interest rates rose a quarter point yesterday afternoon. is this good or bad news?
looking at interest rates can be interesting. some may be on the side where seeing rates go down is a good thing, others see the rates go up and start to get excited (me!). can you say pathetic? does anyone else out there care about interest rates? am i crazy?
no but here is the simple version of why i’m excited:
our country has been in a major economic slump for like the past 4 years (see date that W took office). actually, i can’t blame everything on the W, but most of it anyway. so we’re starting the sliding action in 2000 or so, and things really start to heat up around august, then we start the real sliding in november, december 2000, january, february, march and so on of 2001 and the slide actually never stopped.
until yesterday.
W and alan greenspan had been slashing the rate like every chance they got just to keep up with our failing economy, to make sure we’d rebound at some point. this slashing got the rate down to 1%, as in, there is really no lower than 1%, as in, we’re fucked. to compare – when reagen was in office the rate reached about 13%, for bubba it was more like a steady 6-8%. we’re currently at like a 50 year low on interest rates, as in, if you didn’t buy a house or a yatch or a car or a plane recently then you need to get your ass out there soon man. money this cheap doesn’t come around that often. W knows the economy is picking up (or would like to bluff us into thinking so, who knows) and has his greedy little eyes focused on how this will play into his re-election bid.
so now the rates will go up, and i assume they will not stop or go back down for a bit, i mean we need to get that rate back up there man!
what this means for you: you’re going to be paying up the ass pretty soon for those home morgages, at least compared to recently. but, maybe you have a few cd’s or money market accounts – you might get a little more action on your investment, which is a good thing.
what this means for the country: generally people spend less when rates go up because there is less money in the peoples hands (nobody goes rushing to the bank for a loan when rates are high). this means we’re pumping less money into our economy but avoiding the inflation. i think we came close to seeing things really heat up in terms of too much money on the market spurring insane demand and prices while tightening supplies. if this happened we’d be in a serious trouble.
a very general feeling from seeing the rate increase is that the economy must be getting better, or analysts feel that we’re getting close to a rebound era.
do your stocks go up or down with this news? yesterday after the news they continued to climb, today they’re taking a dive. one thing for sure is that there is no telling what the market will do, ever.
go buy something big if you’re pessimistic.
go stash that money in the market if you’re optimistic.
looking at interest rates can be interesting. some may be on the side where seeing rates go down is a good thing, others see the rates go up and start to get excited (me!). can you say pathetic? does anyone else out there care about interest rates? am i crazy?
no but here is the simple version of why i’m excited:
our country has been in a major economic slump for like the past 4 years (see date that W took office). actually, i can’t blame everything on the W, but most of it anyway. so we’re starting the sliding action in 2000 or so, and things really start to heat up around august, then we start the real sliding in november, december 2000, january, february, march and so on of 2001 and the slide actually never stopped.
until yesterday.
W and alan greenspan had been slashing the rate like every chance they got just to keep up with our failing economy, to make sure we’d rebound at some point. this slashing got the rate down to 1%, as in, there is really no lower than 1%, as in, we’re fucked. to compare – when reagen was in office the rate reached about 13%, for bubba it was more like a steady 6-8%. we’re currently at like a 50 year low on interest rates, as in, if you didn’t buy a house or a yatch or a car or a plane recently then you need to get your ass out there soon man. money this cheap doesn’t come around that often. W knows the economy is picking up (or would like to bluff us into thinking so, who knows) and has his greedy little eyes focused on how this will play into his re-election bid.
so now the rates will go up, and i assume they will not stop or go back down for a bit, i mean we need to get that rate back up there man!
what this means for you: you’re going to be paying up the ass pretty soon for those home morgages, at least compared to recently. but, maybe you have a few cd’s or money market accounts – you might get a little more action on your investment, which is a good thing.
what this means for the country: generally people spend less when rates go up because there is less money in the peoples hands (nobody goes rushing to the bank for a loan when rates are high). this means we’re pumping less money into our economy but avoiding the inflation. i think we came close to seeing things really heat up in terms of too much money on the market spurring insane demand and prices while tightening supplies. if this happened we’d be in a serious trouble.
a very general feeling from seeing the rate increase is that the economy must be getting better, or analysts feel that we’re getting close to a rebound era.
do your stocks go up or down with this news? yesterday after the news they continued to climb, today they’re taking a dive. one thing for sure is that there is no telling what the market will do, ever.
go buy something big if you’re pessimistic.
go stash that money in the market if you’re optimistic.
thrown together by raz at 12:08 PM
<< Home