Gothamist: Federal Reserve Cuts Interest Rate to 2%

Spiritof76

Thu, 01 May 2008 18:29:05 -0500

[10] and [11]: I noticed that, too. I've always found that those who most readily display the flag are the least likely to understand and defend the principles behind it. It's just something for them to hide behind, a veneer of patriotism or actually nationalism. This is actually a violation of the Flag Code, which says, "No part of the flag should ever be used as a costume or athletic uniform. However, a flag patch may be affixed to the uniform of military personnel, firemen, policemen, and members of patriotic organizations." I guess these guys think of themselves as a "patriotic organization."

JenChungsBra

Thu, 01 May 2008 14:42:07 -0500

"If you cut the interest rate down far enough, businesses will have an incentive to invest to get a smaller return..." Maybe that's an error or maybe I don't understand, but why would someone have an incentive to invest to get a smaller return?

rdc

Thu, 01 May 2008 14:04:58 -0500

#15: If you want to save money, buy gold/silver and securities denominated in foreign currencies. The dollar is an awful place to keep your wealth right now.

MaiaW

Thu, 01 May 2008 13:02:39 -0500

Well, i'm glad you econo people are such lovely people to talk with! I appreicate the explanation, but do us non-econ people a favor and chill on the sarcasm, please. I think a lot of people are worrying about how to save money. Perhaps there is some grander scheme going on, but i mean, it's been MANY rate cuts since last year, and individual families are feeling the brunt of it on both ends (i.e. higher costs and not being able to save as much). I don't think it's uncouth of people like us to complain about it!

kissel

Thu, 01 May 2008 12:11:24 -0500

This is doing nothing other than making the dollar drop like a stone and increasingly making the money in your pocket worth less by the day.

nivek

Thu, 01 May 2008 11:59:05 -0500

I don't think any of them are correct, quite frankly, given the bullshit nature in which they were conceived (i.e. taking Helmholtz's broken physics equations and fitting it to the economy). That said, Keynesian economics is what has driven policy decisions for a good part of the 20th century, up until the present; the way it is presented is, of course, dependent on ideology.

Bottomless Chips

Thu, 01 May 2008 11:42:08 -0500

Nivek, Keynes is just one school of thought. That doesn't mean it's correct.

mocanlagunas

Thu, 01 May 2008 07:48:58 -0500

#10 haha! yeah, what's with the flag?!?

JoeSchumacher

Thu, 01 May 2008 07:32:58 -0500

Are those guys astronauts?

matty

Thu, 01 May 2008 07:16:25 -0500

If the credit markets aren't giving new credit who cares if they slash interest rates? No one can get a loan anyway.

Eoin MacNeill

Thu, 01 May 2008 07:13:04 -0500

They are watching the People's Court. And a lot of those floor jobs have disappeared. Hybrid Trading, she is a cruel mistress.

sonyactivision

Thu, 01 May 2008 02:44:55 -0500

Japan 1989: 0% interest, 0% growth, 0% common sense. Welcome to the next decade of total entropy.

JacqueMehoff

Thu, 01 May 2008 00:37:14 -0500

You said it. Ain't that the truth.

shamanovsky

Thu, 01 May 2008 00:26:39 -0500

Nivek, thanks. Exactly. The mob remains the clueless mob.

JacqueMehoff

Thu, 01 May 2008 00:00:31 -0500

those 2 guys will still have a job, right? oh, thank God. scared me for a sec. don't scare me like that.

nivek

Wed, 30 Apr 2008 23:55:27 -0500

#1 Because you're not an economist. http://en.wikipedia.org/wiki/Keynesian_economics If you cut the interest rate down far enough, businesses will have an incentive to invest to get a smaller return, as long as it nets more than stashing the cash (present value calculations).

blablanyc

Wed, 30 Apr 2008 23:52:03 -0500

Uncle Ben doesn't have any ideas.

MaiaW

Wed, 30 Apr 2008 23:41:05 -0500

I dunno, man. How the heck are we supposed to save any money to put back into this economy of ours if the interest rate is effectively 0?! I mean, it was bad enough at 4. But 2? 2 is pitiful. I just don't see how this does anything good...