How does a fed rate cut benefit - Page 2 - cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board

exUte · 03-19-2008, 09:16 PM

Quote:

Originally Posted by Flystripper

Time to get a new card.

But in general, the rates are still in the high teens. Sure they will give you a short term carrot and then the piper will come a calling.

Flystripper · 03-19-2008, 09:18 PM

Quote:

Originally Posted by exUte

But in general, the rates are still in the high teens. Sure they will give you a short term carrot and then the piper will come a calling.

Unless you have crappy credit, you need to get a new card.

exUte · 03-19-2008, 09:19 PM

Quote:

Originally Posted by SeattleUte

Does exUte have any credibility after this statement? In the early 80's home mortgage rates were higher than average credit card rates now. Not to mention substantially increased regulation of credit cards. I've received a dozen offers of 0% for 12 months in the past year. What a bizarre, super uninformed assertion.

like you! And you call me uninformed? So they just loan out money at 0% because they are philanthropists? You're a friggin .......

Oh never mind.

Cali Coug · 03-19-2008, 10:00 PM

Quote:

Originally Posted by exUte

I haven't. Credit card rates went up in the early 80's and haven't come down since.

Is this like your son paying over 8% on a Stafford loan?

Cali Coug · 03-19-2008, 10:02 PM

Quote:

Originally Posted by exUte

like you! And you call me uninformed? So they just loan out money at 0% because they are philanthropists? You're a friggin .......

Oh never mind.

Exie, if you are paying more than 0% on your credit card right now, it is due to a lack of planning.

The cards give you 0% for a year. If you default on a payment, the rate skyrockets (so don't default). After a year, the card starts to charge interest at varying levels (you have to read up ahead of time if you plan on keeping the balance on that card, or you have to transfer the balance to a new 0% card for another year).

ERCougar · 03-22-2008, 08:42 PM

Lowering the fed rate:
1) Decreases the interest rate banks have to pay to borrow money for emergency purposes, which
2) Decreases the risk banks face of keeping lower reserves on hand, which
3) Increases the amount of money available for loans and other financial instruments, which
4) Decreases the interest rates on these loans (the "price" of a good whose supply has just increased)

There you go, exUte. You really need an econ class--it would do wonders for your conspiracy "big guy out to get us" theories.

03-22-2008, 08:42 PM	#16
ERCougar Senior Member Join Date: Oct 2007 Posts: 1,589	Lowering the fed rate: 1) Decreases the interest rate banks have to pay to borrow money for emergency purposes, which 2) Decreases the risk banks face of keeping lower reserves on hand, which 3) Increases the amount of money available for loans and other financial instruments, which 4) Decreases the interest rates on these loans (the "price" of a good whose supply has just increased) There you go, exUte. You really need an econ class--it would do wonders for your conspiracy "big guy out to get us" theories. Last edited by ERCougar; 03-22-2008 at 08:47 PM.