Quote:
Originally Posted by ASAP
i appreciate these paragraphs... except I am still asking the same question-
Why are we lowering interest rates right now? What is the rationale and how is it supposed to help the average consumer right now?
|
"Help"? It won't. It will mostly help large business and the ultra wealthy.
More sub $200K/yr households are cash strapped now compared to a few years back. Lower interest rates will entice many to spend money they don't have. I say "many" because the vast majority in this country either don't make enough to save much and the higher income folks tend to live outside their means and don't save remotely enough to maintain that lifestyle. Those higher income earners, usually in their 30s and 40s, often say, "I love my job, I'll work until I'm 75 so I'm not worried about retirement!". Thing is, life changes and real sh!t happens, especially once you get into your 50s-60s.
I've worked hard, invested hard, played hard, and my wife and I have lived within our means while raising two great kids who have the same saving/investing mindset. My wife (49) and I (50) sleep damn good at night knowing our moderate home is paid off, cars are paid off, and that I could retire at anytime and we'd be completely fine.