[Rocketfan]

The Federal Reserve, confronted with a global stock sell-off fanned by increased fears of a recession, cut a key interest rate by three-quarters of a percentage point on Tuesday, the biggest one-day move by the central bank in recent memory.

The Fed said it was cutting the federal funds rate, the interest that banks charge each other on overnight loans, to 3.5 percent, down by three-fourths of a percentage point from 4.25 percent.

The Fed action was the most dramatic signal it can send that it is concerned about a potential recession in the United States. It marked the biggest one-day move by the central bank in recent memory.

http://biz.yahoo.com/ap/080122/fed_inte ... .html?.v=1

[Sly Fox]

I realize that for many of you college guys, this type of info just seems like blathering in the wind.

For the Old Hags, it sends chills down on our spines remembering previous recessions. Let's pray it doesn't go that far.

[Rocketfan]

When i see headlines this AM about foreign stock markets sliding down the most in 17 years, i think this move is good but im not sure what else can really be done at this point...

I spent the weekend in DC with a few of my friends who are VP's for multiple high profile banks and they are predicting a recession an a pretty steep stock market fall...

[PAmedic]

I'm concerned- though I suppose I get more shares for my buck when buying at the end of each month.

My portfolio has been taking a beating (value- wise) over the last couple weeks, though.

[Sly Fox]

Everyone's portfolios are getting the snot knocked out of them. Thankfully I don't plan on selling anytime soon.

[PAmedic]

agreed- but I was thinking of taking some earnings for a project...

crap.

[SuperJon]

Sorry for being a selfish jerk, but this could be really good for me.

[RubberMallet]

Sorry for being a selfish jerk, but this could be really good for me.

me too....i'm looking at buying into some new funds here in the next month or so....i can get much more now...

[LUconn]

it's good for most people. That's why they do it. But it is a sign of other bad things.

[SuperJon]

But it's potentially insanely good for me. My job is pretty much based off of interest rates. If the banks decide to cut their rates by a point, everybody and their brother is going to start refinancing and that means a lot of work for me. Coming off of the past three months, that's very good.

[Sly Fox]

I would have to imagine the Refi business has to be in trouble these days. Interest rates have been down for a significant period of time and most everyone who has been through one realizes they are bad business unless you have some unreasonably high rate.

[SuperJon]

The rates lately have been terrible so not many people are refinancing. If the banks cut their rate a point, it's going to get the ball moving big time.

[Ed Dantes]

Why do we have problems:

1) First, stocks are still higher than they were before the 2000 crash set in (although probably not for long). This isn't soup kitchen land.
2) This is what's known as a 'correction'. Stocks shot up too far, too fast, this is the fix.
3) Our idiotic drive for ethanol drove up food prices, which started inflation worries.
4) The Fed was too concerned with inflation to act.
5) Home prices skyrocketed due to irrational exuberance.
6) People were drawn in to low interest rates and rising home prices and decided to purchase a home.
7) People spend way too much and save way too little.
8) Rising cost of oil due development of third world countries (china & india) and refusal to develop sources here
9) Cost of oil damages U.S. economy, causing investors to look for other options (such as gold and other currency, such as the Euro)
10) Combination of 2-9.

Don't get me wrong. This really sucks. But it's not the end of the world. Until we've reached the bottom, IMHO, plow your money into the stock symbol called "DXD". Basically, when stocks go down, this stock goes up. And Gold. Invest in gold.

[LUconn]

If people start refinancing their homes now I have lost all hope for this country. I have faith that this will not happen.

[RubberMallet]

does anyone know of any people that refinance ever 3 years it seems?....there is a guy at work who does darn near every couple of years....

the guys is always crying about money....he owns 2 brand new impalas and a 2 yr old f150 truck... and everyday, newegg is making a delivery to his cube...

[SuperJon]

If people start refinancing their homes now I have lost all hope for this country. I have faith that this will not happen.

You give people too much credit.

[Fumblerooskies]

Can I blame the Fed for cutting my wife's interest rate?

[RagingTireFire]

You people act like a recession is a bad thing. Recessions are a natural part of any economy. They're a natural correction to over-consumption and they are completely inevitable. Fortunately, if you can fight the temptation to hoard, a recession is a prime time to invest. Options become much more available and you can get so much more for your buck which, when the economy turns up again -- which is also inevitable --, you're that much farther ahead.

[scuzdriver]

So you're saying I should lock in my line o credit rate? I think yes!

[ATrain]

Way to increase inflation...I hate the Fed

[Ed Dantes]

Can I blame the Fed for cutting my wife's interest rate?

How long have you been married?

[Fumblerooskies]

23 1/2 years. She's 48 so it might be time to trade her in for two 24 year olds.

[whmatthews]

23 1/2 years. She's 48 so it might be time to trade her in for two 24 year olds.

Dag...

[PAmedic]

man...

given...

enough...

rope...

to...

hang...

self

[Ed Dantes]

23 1/2 years. She's 48 so it might be time to trade her in for two 24 year olds.

Dag...

Or in RocketFan's case, three 16 year olds.

(Dude, seriously: 16 will get you 20.)