United States economy

Wow! The market is not doing so hot in general.  Stocks are down. Real Estate is still dumping, and the economy is not the best.  We all know that yesterday the Federal Reserve lowered rates by 3/4 of a point.  As I have seen in the past that after rates drop, my savings accounts rates usually go down and I hate that.  So yesterday when I saw rates got lowered again, I moved some of my savings to a CD.  It was a good move because today I saw they lowered my savings almost 3/4 of a point.   It might be a good idea to move some money over to CD’s especially if rates get lowered again in the near future.

Where should people be putting their money?

Advertisements

2 responses to this post.

  1. Posted by Sandy on January 23, 2008 at 5:29 pm

    Yeah, the economy is very weird right now.

    The Fed lowers interest rates so that it is less expensive to borrow money. If it is less expensive to borrow money, businesses and people will spend more money because borrowing money will be more affordable. Consumer spending is VERY important to our economy. In fact, consumer spending makes up 75% of our gross domestic product.

    When the Fed lowers interest rates, rates for bonds go down, too. So when bonds go down, stocks go up. But that’s not what is happening right now. The interest rates keep going down and down, but so does the stock market.

    Who knows that will happen.

    Reply

  2. Posted by Intrigued Viewer on January 24, 2008 at 10:25 pm

    Well, actually media reports have state that consumer spending is low due to consumers’ fear of dropping into a recession, but the truth of the matter is we’re practically already in a recession. The media just can’t confirm this because reports haven’t returned whether we’re there or not so we can’t be definite, but I assure you we’re pretty damn close if not already there.

    As for where should our money be going; I’m not totally sure. Money Markets, CD’s, Bond are always the safer way to go. However, but be careful; because keeping them in there for too long just slowly depletes one’s savings because the taxes on these types of accounts are a almost as high as the interest on the return. So, if you’re not careful the taxes will break you…

    Reply

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: