Community Chat

[shoekitty]

It helps corporations, bigger ones.  That said, it is like tax cuts for corporations ....it is suppose to trickle down.  If stock goes up it helps there. It will cut credit card interest, and if you refi or buy a home or car it will help.  To me it is one big disaster.  Most of us are retired, or almost.  Homes nearly paid for, no new cars on horizon for me.   But what do I Know...I am a lowly tax payer.  I am one of you whose taxes keeps our nation running.  Lol

[BrandiDavis]

Ok, I will admit I'm totally ignorant when it comes to stuff like this. What does this even mean?

[shoekitty]

@BrandiDavis    When the feds cut   Zero interest, it is the rate banks get to exchange money.  Now they ave to pay to exchange,money. Which takes away from their profits.  What does this mean to us, the customer.?  If you have money in Money Market, CD, a savings acct or interest baring checking your rate will be reduced to maybe 1/4%.  This hurts people who save their money rather than  gamble with stock market.  Many accounts are tied to interest rate and you can get a monthly dividend or interest. No more, or pittance.  I know we counted on interest on one acct to add to monthly funds.   I know people who will loose literally 4,000-2000 @ month.  

on the other hand those who borrow will pay lower rates.  Therefore lower  payments! This will help people buying homes and large equipment.  This helps the most corporations who use loans to buy stuff.  But we know when they save money, they do not pass it on,  they keep it

I forgot a lot, but others can help with clarifying.  Hope this helps

[itsmetoo]

It seems as if things keep getting worse by the minute.  I can't help but wonder now if we could possibly be looking at negative rates in the future?

[patbz]

@itsmetoo :  There are several countries where that has happened.  I don't completely understand how that works (I have tried to understand).

[BrandiDavis]

@shoekitty  Ty for taking the time to explain that to me! Definitely doesn't sound good for those who have as you stated savings accounts, etc...Yikes! I really hope they are able to make it during these times. It's such a scary time for everyone. We WILL get thru all of this though. 

[ms traditional]

it means liquidity in the banking system. the financial system is strong but  the Fed wants banks positioned to do lending for businesses at this time as we get over the hump.  8 banks went to Fed discount window overnight  to borrow in order to be positioned to pump money into the system.  it's a move to keep things moving - so that there is no credit crunch. 

[songbird]

It's a "instant" boost of the American economy overall.  The idea is keep workers spending.  This was also done to keep free falling market some control to recover.  Beneficial for workers so they can borrow.  Not so great for those who have limited income such as retirees. But in the long run, a good fix to the economy.