Today, the Feds cut the federal funds rate to 3.5 percent and the discount rate (or the bank interest rate charge by the Feds) to 4.0. To me this means businesses could borrow more at a cheaper rate even though they are up to their eyeballs in debt. It’s interesting that these cuts do nothing to help the poor rise above already hopeless state without better job opportunities or bank accounts to their names.
If the Feds really want to help the economy, they should cut the interest rates on predatory lending by capping the interest rates to no more than ten percent on any outstanding line of, say, credit cards. This could ensure that consumers are able to pay down their debt AND at the same time buy more useless, inanimate junk, err I meant, profitable commodities, like fat ass, junk food and expensive, dry clean only clothing.
The Feds could take the extra step and further cap the practice of predatory lending on poor, black folks (mostly) by the removal of all adjustable rates and the replacement with fixed rates on any outstanding mortgages. This could stimulate in the minds of high brow airheads to purchase over-priced cardboard boxes, err I meant, real property, such as time-shares, condos, single residents, etc.
Furthermore, with the falling prices in stocks, this should signal the investors to buy more securities. But unfortunately, the funds used to buy these stocks is nothing more than worthless chattel paper, on top of which is the dollar is rapidly declining in value against the Euro’s, for example.
I think it’s time for TPTB to give up their interest on always being on top of the backs and shoulders of hard working, poor American citizens, some of who are illegal by the way. This means that some government benefits of food stamps, health care and social security happen to find their way into the hands of those who have not lifted a finger while buying nice jewelries and fancy clothes to wear and courtesy from us TAXPAYERS.
Copyright © 2008 by Fluffy von der Flynn. All rights reserved.
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