The FED Drops the Rate

The Federal Reserve dropped the interest rate this morning 3/4 percent. Instantly the stock market dropped 465 points then gain most of it back settling at 40 points down. Wall Street is now down 120 points as the day has gone on. This rate drop is an effort to off set the global markets taking a dive over the weekend and an anticipated recession because of over spending by good old Americans. This is the 4th such rate cut since September.

I have know idea what this means but I do know it is because of all those people who pick up the adjustable rate loans or the interest only loans. Those people are now realizing that those mortgages suck and will end up costing them a great deal of money and they are defaulting on their loans. Also the companies that sold the mortgages showed a high lack of ethics in sell a loan to a people who would not be able to cover the payments.

Our economy is in for a rocky ride as the Fed Chairman Ben Bernanke tries to balance out all the market forces to compensate for the bad finical decisions made by people who can't afford their rock n' roll life styles.