If you are at 4.5% you should have refinanced last week.
Run.. don't walk. To your nearest friendly lender. And refinance now.
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
US Federal Reserve just slashed interest rates to 0%
- Thread starter Deleted member 431
- Start date
If you are at 4.5% you should have refinanced last week.
Run.. don't walk. To your nearest friendly lender. And refinance now.
So I'm currently preparing for a move and was going to get a personal loan to refinance the credit cards. Does this affect me in the immediate?
I'm not sure how you got to my complete ignorance of the Fed, the economy and interest rates from a throwaway reminder that Trump believes Powell is an obstacle to his economic and reelection "plan" but thanks for filling on the gaps so people realize I have no clue what I'm talking about or referring to.
the bottom bolded paragraph
US PoliEra 2020 |OT4| Disaster Voltron
I'm confused, am I supposed to be surprised that nearly every video conferencing solution available is a clusterfuck?
www.resetera.com
happened yesterday and is what I was specifically referring to - not macroeconomics . I have no insight into whether they're related or not and I already stated that this cut may have rational utility but we don't reliably live in an "ordinarily this would be a sensible measure " environment.
Last edited:
Will I be able to refinance my student loans over this? I have a few open accounts with some of them going as high as 6.96%.
There are people still supporting this buffoon and joke of administration...
I swear ya'll in the future when a democrat is president and have to hear a rant about how this is all Obama's fault - I'm straight punching them in the face. I don't even fucking care.
I swear ya'll in the future when a democrat is president and have to hear a rant about how this is all Obama's fault - I'm straight punching them in the face. I don't even fucking care.
It means Trump can refinance at stupid cheap rates.
The next step is to go negative, which punishes people for saving.
0% interest is GREAT for people with money, credit, and the ability to use debt.
0% interest sucks ass for the common citizen with little savings and living paycheck to paycheck.
The amount of hot takes and misinformation in this thread is staggering. JFC, the Fed cut the rate to zero in 2008 and kept it at zero until 2015.
I am not saying this is good, but it is not unprecedented. Calm the fuck down.
I am not saying this is good, but it is not unprecedented. Calm the fuck down.
I have a bad feeling about this, last I had such a hunch it was about the "Supprimes" in 2008... just a hunch.
I feel like we're approaching the point at which there'll be a bank run, and then things will get really bad.
These two things have nothing to do with one another.
These two things have nothing to do with one another.
We are already in a deep recession.
This is going to be as bad as 2008 but in a shorter period of time.
This is going to be as bad as 2008 but in a shorter period of time.
This just means that banks are more likely to lending the riskier side since they can get funds easier, right?
If I already have or mortgage or I'm looking to buy, this doesn't immediately affect me?
If I already have or mortgage or I'm looking to buy, this doesn't immediately affect me?
if our already low interest rates are too high for him to buy a house - he should not be buying a house
Is there anything someone like me, who has a little under 10 grand in savings, no investments, and a relatively small-ish amount of federal student loans, can do to benefit from this at all?
Get a grip dude
Low credit lending for businesses is a big deal - this isn't a panacea but it could help prop up parts of the economy
Thank you. We are in good shape so we will definitely buy a house then this fall.
We're not even in a recession yet.
Moving to 0 to combat a deep recession is understandable.
Being at 0 before a recession gives you little room to push the market.
For the people in the back
You have to compliment rate cuts with sound policy moves, both executive and legislative.
That's not adequately happening.
You have to compliment rate cuts with sound policy moves, both executive and legislative.
That's not adequately happening.
Not really. If your loans were private, I'd say consider refinancing for a lower rate.
Of course they are. This isn't an economic crisis it's a health crisis. All the fed is doing here is rearranging deck chairs on the titanic.
As someone looking to migrate to USA in a short-term, would it be a bad time to do so? I imagine that if the economy crashes again people with working visas will be the first ones to be cut off...
Sorry for the somewhat selfish question. Hope it doesn't happen!
Sorry for the somewhat selfish question. Hope it doesn't happen!
We are absolutely in a speed run recession.
A huge number of people I know were basically told they don't have a job for at least a month.
Businesses are being forced to close, etc.
Welcome to the recession.
no not the same— - the financial crisis was extremely complex but happened in large part due to previous calculable lending crises- the market knew how long it had been fiddling the books for and to whom for what- and the deepest impact and sharpest spotlight (not necessarily harm or blame mind you) was across a limited Set of financial institutions and investors- the "innocent" parties were affected in a broad but sort of "evenly distributed" hurt (nobody was unaffected) - this crisis also has real world direct economic and logistical impact on every single industry and government and no solid understanding of an exit path beyond seasonality of well understood older virii- but basically no industry or nation can return to business as usual once the corrections and plans are fully enacted- for example - restaurants and movie productions and plane flights are sunk irrecoverable cost - they won't slowly bounce back over the years like a 401k or a stock price - those investments are destroyed and the entire world economy is recalibrating on the fly.
So in this one, (extremely reductively because last time it obviously wasn't just a single culprit and the harm wasn't literally evenly distributed)- - it's not just "bad mortgage loans" that are toast.
this is more like 9/11 AND a recession (it's not actually a recession yet and might not become one) or financial crisis (we don't know how deep this will go or how resilient the markets are) in that businesses can't simply begin trying to recoup losses or grow business or take advantage of failed competition- because a significant chunk of the economy and social order is on pause.
we will need spectacular international cooperation to get to a better place in a reasonable time frame- and some economies and infrastructures will be hurt more than others- and some industries permanently changed. Mrs Stinkles for example, writes European travel guides for older Americans. That's not going to be hot cakes this spring....
it may not be worse than the Great Recession but it's definitely not the same.
a big issue for the US in particular was that the long period of record low interest rates and other financial factors was pointing to a potential recession before Coronavirus anyway. the Fed was under non stop pressure from Trump personally to suppress interest rates because it was generally good for the stock market- but not necessarily the economy writ large.
that may be separate from this decision and indeed Powell has shown plenty of backbone and independence- so this decision may not be affected by Trump at all -/but Powell is also aware that if he quits or is pressured out(Trump can't actually fire him) then the next Fed chair might be a dangerous yes man.
Powell is stuck between a rock and a hard place. This may be a wise decision or it may be a canary in a coal mine.
Last edited:
They are trying to give life boats to people to survive until another ship picks them up. I think that would be a better analogy.
This is a completely different situation.
The Fed didn't drop the rate on deposits to 0%. This was a drop in the rate to borrow, not deposit.
https://www.federalreserve.gov/monetarypolicy/reqresbalances.htm
The ECB has a negative rate on deposits.
No, this will just pour jet fuel on housing unaffordability issues. Free money to banks plus no interest just means even more land and housing stock bought up as investments.
Can someone in the know explain how this would effect a house refinance? I was literally asking my bank last week what kind of rates they would give me based on what Fed did a few weeks ago. This drop to 0% is huge. What does it mean?
My fiance is also in the process of buying a house and was getting rates of 2%. She is still searching and no bids are out so does that mean she will get 0% on her home loan?
My fiance is also in the process of buying a house and was getting rates of 2%. She is still searching and no bids are out so does that mean she will get 0% on her home loan?
Yah. There's a good chance the wealthy are going to dump their money into property. Why not buy more houses and charge rent as a safe haven?
So many variables it's hard to know what's going to change.
So many variables it's hard to know what's going to change.
Yeah I'm not sure what to even call it. People are underestimating the abrupt halt to cash flows around the world. Nearly every industry is being shocked by a lack of commerce that will last for the foreseeable future. We're in extremely uncertain times