The Fed announced that it would be cutting interest rates again, to which I thought…err….good? I think? I took macroeconomics in college a loooong time ago, and although I maintain a loose grasp of the general concept, I’m still a little fuzzy on the practical, every day individual effects of the rate cuts - and I know I’m not alone. Let’s face it, economics is confusing. Hopefully this brief breakdown of the interest rate cuts, provided by CNN, will help us all to understand a little better how the rate break will affect the average consumer:
Why did they do it?
People will be able to conduct business easier, and the economy will “theoretically” expand. Lower rates = cheaper loans and more people will be able to borrow money.
When will it affect mortgage rates?
The federal funds rate is what is being adjusted, which is generally 3 points lower than the prime rate. Consumer loans are pegged to the prime rate, but this tends to follow the fed funds rate. Loans like mortgage rates or student loans track treasury bonds, which aren’t immediately affected by the change in the federal funds rate, but they generally follow after. Translation? The cuts will be good for people with variable rate mortgages and home equity lines of credit. When the rates dip, your debt is cheaper.
Will it help people who don’t own homes or have those types of loans?
Possibly, if you have credit card debt. Variable rate credit cards tend to move along with prime interest rates, but not always. People with car loans, however, usually purchase their vehicles at locked rates, so they wouldn’t receive any relief. If you’re looking to purchase a car now, you might find lower rates than before.
* * *
If you’re starting to feel the economic crunch, creating a budget can help alleviate some of the stress of keeping your financial house in order. 
and learn how to compile a quick and easy budget in less than an hour.
CATEGORIES: Ethics, Global Health
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I hate to burst your bubble, but we can’t have an ever expanding economy on one planet without putting something back.
It is hard for me to swallow that our governments think we can spend our way out of the dwindling resourse issue.
We enjoyed a great deal of wealth from resources that were funnelled here from the rest of the world.
The rest of the world has been our playground but I think the playing is over.
These resources are being used up at an alarming rate.
OOps, did we waste a bunch?
Time to go to work.
Lora
I am posting this because I do feel bad bursting the bubble.
I am very proud of it.
Enjoy!
Lora
Bubble in Space
Inspired by Mr. Gene Roddenberry
Our small lovely planet, with ozone around it,
Spins on its axis, which wobbles a bit.
It flies through the air, like a bubble in space,
Attracting our sun, which shines on our face.
All who fly on it, are connected in life.
All colours of man should live without strife,
In the air that we share, with the bugs and the bird.
To pollute is to kill us. Please let me be heard.
Nature’s balance of air was perfect for us,
Nitrogen, oxygen, CO2; why did we fuss,
And make other gases so toxic to man?
For the sake of our kids, these we must ban.
The lungs have no filter, such a sad oversight.
Why does evolution stir up such a fright?
What cell will a foreign gas attack? Is cancer the way
To evolve what man needs, so on earth he can stay?
Our bubble is in trouble, because bullies abound.
Those who are bigger use power to astound.
The big have the brawn and can simply raise a hand,
To smite the smaller, before they can take a stand.
Terrorists are desperate men. We have all seen the horror,
But their life style is threatened by close minded furor.
The big and the powerful can do what they want.
The small have few options, so use terror to haunt.
We all know that white man can tame native land.
Why would he let greed guide what he wants banned?
We are the leaders now, so with care we must tread,
And clean up our waste, or face a future of dread.
Sewage in water, toxic waste in the ground.
Plastic, battery acid, huge landfills abound.
That’s not what’s intended, it makes biospheres bad.
We must take care of our bubble or our kids will be sad.
A vision called the prime directive should be put into place.
Let everything be, live in harmony, on our bubble in space.
Lora Bruncke