Nearly free money on the way?

December 15, 2008
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The Federal Reserve this week is expected to drop the rate at which banks loan money to each other below 1 percent. That means interest rates on loans for just about everything, from cars to housing, eventually would fall further.

The interest youâ??d pay on a loan would be several percentage points higher than the so-called federal funds rate. But the trend is down, and that means the getting may be as good as itâ??s been in a long time.

If youâ??ve been holding back on a purchase, how much further would rates need to drop before youâ??d pull the trigger? Or are you so worried about the economy, your job or your business that even a â??freeâ?? loan wouldnâ??t draw you into the market?
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  • Is it me or do you think credit cards from department stores and gas stations are charging too much interest? (Up to 24.99%)
    If they would come down I would buy more.
  • It's not you. The isssuers would argue that I'm wrong- but I surmise that if you capped credit card interest at 10%, consumer spending would rise and debt would fall. Assuming somebody has $10k on a card, that's anywhere from $500 - $1500 extra in their pocket depending on what rate they have. I'm normally not a person who cries that's not fair!, but credit card issuers have charged usury rates for way too long.
  • Anyone who uses their credit card as a loan deserves to pay those high rates.
  • Even if you try to prove your self-worth with good to excellent credit, they still distrust you with a lower interest. I say, we need to grab our pitch forks and torches and storm these Credit places. Take action now.

    I understand that everyone needs to make a profit, but 25% markup is crazy. Of course, if people knew the markup of varios retail products, they would think twice about buying from the middleman. For Example, a Hard Drive attachment for XBox 360 (when it came out) costs the end user $100 (suggested retail price). Whole Sale price is $33. That is roughly 300% markup. These retail stores have agreed to carry it for atleast $100 if not more to make a profit on it.

    If you put this on your credit card, and not pay it off right away, Credit Cards dip into your pocket as well as retail stores. Granted, There are alot of expenses that are unforseen, but where do we draw the line? Do we get the privlage to have all companies have open (accounting) books for review? Shall we Micromanage companies? To what extent? I am not deffending Retail Stores or Credit Card companies, but when do we draw the line? How do we draw the line without knoledge of what expenses are being paid? I want to call UnFail Practices on credit card companies, but how can we do that without (partial to complete) open books to regulate profits?

    Governmet stepping in to regulate, yet also call for small government. Where to draw the lines? What is politically correct? It is a moving target and a sticky situation. We want to make the most money but spend the least.
  • The best and only way to get back at the credit card companies is to not use them. The old saying, if you cant buy it with cash you cant afford it, is true. If you need to wait a month to get something then wait for crying out loud. If you need to use your credit card to pay a utility bill or food for family, get a part time job. It is such a simple fix, but most people clearly do not use the brain in their skull. I owe nobody, minus a mortgage, but no credit card debt at all and no car payment. I can not tell you how good it feels to have all the extra money in MY pocket and not theirs.
  • I just wish lawmakers would define USURY rates. All interests needs to be X amount or under.

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