Feds raised rate to 5%

[JoyJoy]

Geez how high are they planning to raise it? Good on savings but not good for people with HELOC or credit card debt.

[markio26]

i am hoping this is the last hike... i was reading reuters this morning and they are hoping the fed shows signs this is gonna be it...

[sweeps]

Unless something drastic happens, I would count on at least one more rate hike.

[poundwise]

WASHINGTON (AP) - The Federal Reserve on Wednesday raised a key interest rate to the highest level in more than five years and signaled it may pause to assess the impact of its string of rate hikes. However, the Fed also left the door open for further rate increases.

[lucasrd]

I just feel bad for all those who have 5/1 ARMs that start to adjust now ...these new rates will cause alot of mortgage payments to go up...

[lucasrd]

Interesting...so much for believing Suze Ormann

[veronak]

In a way I hate to say it and I know it is wrong but I am glad the rates are rising maybe some of the homes that I have been admiring will be on the market at a much lower price. But I agree if you have any arm loans, cc and HELOC you are screwed

[boefixepa]

GGRRR I have a HELOC! I need the LLC I'm part of to sell so I can pay it off! Keep your fingers crossed. We have an offer and they have to have financing by the 15th!! Here's to hoping!

On the flip side...Here's hoping ING doesn't dilly dally on the interest hike!

[JoyJoy]

What a mess this country is in with bad news everywhere one turns. Credit card companies are getting over like fat rats if you are even late with one creditor (universal default) or even late paying a utility company. Credit card interest can go up to as much as 40% today also. President Bush received over $8 million from the credit card companies for his election compaign and that is why, I believe, the rates are continuing to go up with no end in sight. Elected officials take care of those who help them get in office. We should stop using credit cards for a specific amount of time and show some solidarity. In the Bible there was a period called Jubilee where the government forgave their citizens their debts and everyone started over on a clean slate. If not credit cards then some other form of boycotting to show that we need relief and that we do not agree with the way this country is headed!!

[VJW]

So much for the ‘One More and Done’ crowd. From the Fed’s press release:

“The Committee judges that some further policy firming may yet be needed to address inflation risks”

Ah, like the rampant price increases across the national economy like gasoline, home heating oil, natural gas, health care, housing, precious metals, insurance, food, education, industrial metals, and transportation ? The only place inflation has been non-existent has been in wages.

Now the Republican controlled Congress is pushing more tax cuts for the Rich & Corporate legislation that will add another $100 BILLION to the federal debt, with those with incomes under $50,000 receiving tax relief of between $2 and $46, while those with incomes over $1 million receiving tax relief of more than $42,000. Never mind throwing money at the wealthy has never before in history benefited the American economy.

Oh, and Whirlpool has announced it will be closing three American appliance manufacturing plants and eliminating 4,500 jobs.

#

well said VJW


on the HELOCs and ARMs though, look I feel bad for those affected but how could you not know it was going to happen? interest rates had fallen to a historic low and those products were being pushed so hard for a reason...rates had nowhere to go but up!


and as far as the credit cards go....well, you know you shouldn't care one wit what the interest rates on credit cards are...

[VJW]

This just in, the Fed is NUTS.

The total amount of money Americans have to spend after taxes relative to overall output of goods and services has hit the lowest level in 25 years:

U.S. Disposable Personal Income as a % of GDP

CHART

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[JoyJoy]

Originally Posted by rexdart

well said VJW


on the HELOCs and ARMs though, look I feel bad for those affected but how could you not know it was going to happen? interest rates had fallen to a historic low and those products were being pushed so hard for a reason...rates had nowhere to go but up!


and as far as the credit cards go....well, you know you shouldn't care one wit what the interest rates on credit cards are...

True rex but still it seems rather harsh with all the raises in the interest rate...what is it 16 already? HELOC were being pushed rather hard, I agree, as we got one ourselves!!

I have only 0% interest rates on two cards which will be paid off by November, but not everyone has 0% interest rate cards and I didn't get them myself until March of this year.

[JoyJoy]

Originally Posted by VJW

This just in, the Fed is NUTS.

The total amount of money Americans have to spend after taxes relative to overall output of goods and services has hit the lowest level in 25 years:

U.S. Disposable Personal Income as a % of GDP

CHART

#

Unbelieveable!! or should I say believeable after looking at the necessary spending out of the paycheck every two weeks.

Originally Posted by JoyJoy

I have only 0% interest rates on two cards which will be paid off by November, but not everyone has 0% interest rate cards and I didn't get them myself until March of this year.

JoyJoy, I didn't mean everyone should have a 0% card, I meant nobody should be carrying a balance and routinely funding the evil empire (above the transaction fees) most spend so much time condemning, that's all.

It was mostly just a playful nudge, not a judgement.

Sorry if it ruffled.

Originally Posted by VJW

This just in, the Fed is NUTS.

The total amount of money Americans have to spend after taxes relative to overall output of goods and services has hit the lowest level in 25 years:

U.S. Disposable Personal Income as a % of GDP

CHART

#

possibly unrelated VJW but I recently received my annual pay increase at work.....3%.....I'm a good employee, it wasn't personal, just the department "restraining" pay increases but I looked at the people evaluating me and asked "do you know what the rate of inflation is/has been the last year?"

I got mostly blank looks as I expected and was asked "we don't understand what you mean," to which I explained that effectively, from a relative prosperity stand point, they just cut my pay.

they still didn't get it.

needless to say, I have "restrained" my output at work lately.

obviously, in the end, it's not going to hurt anyone but me, but I've never let common sense stand in the way of making a point.

[Ima saver]

The rate on my money market changes every time the fed raises rates. It just went up, again!

[JoyJoy]

Originally Posted by rexdart

JoyJoy, I didn't mean everyone should have a 0% card, I meant nobody should be carrying a balance and routinely funding the evil empire (above the transaction fees) most spend so much time condemning, that's all.

It was mostly just a playful nudge, not a judgement.

Sorry if it ruffled.

Me ruffled? No it wasn't accepted in that vain, rexdart. I understand what you are saying and you're perfectly right.

also, for a little perspective on all this (forgive the memory if it fails)....I think the rates went over 7% sometime just before 1979, they would not come back below that until the late '80s.

before the bonanza began, I think we were right about where we are now around the turn of the century so things are more or less returning to normal (now there's a horrendously relative term for ya!)

of course there are so many other things that go into that such as inflation pressures and wages (which as far as I know have been alarmingly stagnant for the last little bit) that it isn't an apples to apples comparison.

but still, I think all in all we are all suffering from just a bit of a hangover after the party.


you want a real eye opener, lookup what the rates were back around '81 of course that's meaningless to today's environment because it isn't like you were going to get an ING account with a $25 opening bonus at 20% but it's sure as heck nice to think about!

[Ima saver]

I worked for a small savings and loan in the late 70's and early 80's. All of our home loan mortgages were at 9% At one point, we were paying 16% interest on savings.