So now the federal government might lower the interest rate on the prime lending rate by a half a percentage point or more! Of course, since it is at 1 percent right now, that raises the prospect of … free money! At least, for banks, not for you guys or for me, that would just be wasteful.
Link below:
http://news.yahoo.com/s/ap/20081214/ap_on_bi_ge/fed_interest_rates
Of course, here is the gist of the article from the Associated Press …
“Many economists predict the Fed will cut its rate in half — to just 0.50 percent. A few think the Fed could opt for an even more forceful action — lowering rates by a whopping three-quarters percentage point or more. If that larger cut occurs, it would be the lowest on records that track the monthly average of the targeted funds rate going back to 1954.”
Wow! That sounds like a motherfucking shit-ton worth of cuts! And something like that has got to help the economy, right?
“Even an aggressive rate reduction won't turn the economy around, analysts said.
"It is not so much going to give the economy a big push forward. It's more a case of trying to help the economy from being pushed further backward by all these negative events," said Stuart Hoffman, chief economist at PNC Financial Services Group.”
Awesome! So now we have the bankers telling us that borrowing money for free won’t help anyone. Which is a shame, but you don’t see this PNC Bank guy telling anyone not to do it right? After all, free money is free money (except for the bank bailout, which is somehow even free-er money than anyone ever thought possible.
And remember, this is from the bank that is using government funds to buy National City and lay off more than 4,000 people! I am so glad the free money is being put to good use and won't help anyone do anything! Even keep jobs! Yay, so happy!
http://money.cnn.com/2008/10/24/news/companies/bank_stocks/index.htm
http://www.tradingmarkets.com/.site/news/Stock%20News/1962895/
So to sum this all up.
FAIL!
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