Federal Reserve Slashes Rate by an Amazing .75 percent

BernankeI continue to think we are living through history in the making.  I think it is amazing that Bernanke and the Federal Reserve decided to surprise the world with their unannounced .75 percent rate cut.  From what I know, this has not happened since 1994 when the last big boom occurred.

This rate cut is making investors go crazy especially in the stock market.  Personally, I love cheap money.  It makes investing in real estate and business projects much easier and more attractive.  However, it remains to be seen how much of a trickle down effect there will be if lenders are afraid to loan money out so soon after being burned by risky credit users.

On Jan. 30, when they have their official meeting, there is a chance for an additional minor rate cut.  For me, I say let’s bring it on although I am certain it will not save anyone who are about to lose their homes to foreclosure through those wonderful ARM loans.

It is going to be a very interesting, albeit, economically tragic year.

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