Quote:
Originally Posted by Multi-Purpose
I was watching CNBC and it doesn't sound like the fed is gonna raise interest rates for the rest of the year. woo-hoo that means credit cards with the prime rate wiill stay low. Don't know why I'n happy about that i don't even got a balance hahaha
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As they say the Feds are stuck in a rock and a hard place... if they keep interest rates artificially low, they are at risk of inflation (I know you feel it at the grocery store, gas pumps and etc)... if they raise interest rates to fast... they may cause deflation.
Do not be too happy... we are in un-charted water... some economist will compare our current situations to thee economy to Japan (they had deflation and had a what they call "lost decade") OR some economist compare our current situations to the economy of Argentina with hyperinflation...
We have too much consumption and borrowing with not enough production and saving... the American consuming at 70% consumption while yes we are in a recession but we need this to cure our economy... I believe the The actual problem with the credit bubble is the fiat currency or the monterey policy... only time will see...