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FED may go Negative with Interest Rates

By John Bailo   Follow   Fri, 31 Aug 2012, 9:14pm   1,864 views   7 comments
In Kent WA 98030   Watch (0)   Share   Quote   Permalink   Like   Dislike (1)  

Marketwatch is reporting that the FED is considering a new stimulus...negative interest rates! Rather than devaluing money with more inflation, this would basic make large borrowers an offer they could not refuse...a deal where taking risks, big ones, makes them money!

What do you say? And what about housing...this should send it to the floor!

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1. Homeboy Follow Befriend 17 threads 1,604 comments

   1   11:55pm Fri 31 Aug 2012   Share   Quote   Permalink   Like   Dislike (1)   The title of your thread is a lie. They have not done so; it is only a possibility.

2. Biff Baxter Follow Befriend 65 threads 188 comments

   2   11:57pm Fri 31 Aug 2012   Share   Quote   Permalink   Like   Dislike   I would like to see prices take another significant leg down but I don't see negative interest rates having that effect. I know that lowering interest rates hasn't driven a lot of demand. If the Fed went to -1.0%, the banks would go to maybe 2.75% or somewhere around there. That would have a big impact on monthly mortgage payments, increase affordability and make renting less cost effective. I would have to seriously consider accelerating my buying timeframe. I think it is pretty unlikely the Fed will make this move. Sounds like wishful thinking. If this post is not fake, you should provide a link to the story. Biff

3. Biff Baxter Follow Befriend 65 threads 188 comments

   3   12:04am Sat 1 Sep 2012   Share   Quote   Permalink   Like   Dislike   http://blogs.wsj.com/economics/2012/08/31/feds-bullard-negative-interest-on-reserves-is-a-stimulus-option/ It sounds like negative interest rates are about charging banks money for parking money. The intent appears to be to promote lending. Biff

4. John Bailo Follow Befriend 95 threads 472 comments Kent, WA John Bailo's website

   4   12:28am Sat 1 Sep 2012   Share   Quote   Permalink   Like   Dislike (1)   Homeboy says The title of your thread is a lie. They have not done so; it is only a possibility. fixed

5. Homeboy Follow Befriend 17 threads 1,604 comments

   5   12:29am Sat 1 Sep 2012   Share   Quote   Permalink   Like   Dislike   Awesome. Thank you.

6. APOCALYPSEFUCK is Shostakovich Follow Befriend (28) 182 threads 4,601 comments Premium

   6   1:16am Sat 1 Sep 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   You heard it here first: Bernake is planting yams.

7. taxee Follow Befriend 88 threads 458 comments El Cerrito, CA Premium

   7   4:00am Sun 2 Sep 2012   Share   Quote   Permalink   Like   Dislike   Protected   All bennies from the fed should be given the hairy eyeball.