Fed cuts key interest rate to 1 percent

Did Bernanke learn anything from what happened to Japan in the 90s when they cut interest rate to 0%?

The best thing Bernanke and Paulson could do for the American economy is abolish the Fed and outlaw fractional reserve banking.

If the banks do not pass it along is done nothing to help.

END THE FED
Before it ends the U.S.A.

We must take back the house and Pass HR2755

The Federal Reserve System is no more “Federal” than Federal Express®!!

The FED was created in 1913 by an abominable act of Congress. With a swift stroke of the pen, President Woodrow Wilson doomed the fate of generations. And enslaved the American citizens to a life of servitude, to an elite group of international bankers.

The FED is in fact a private banking cartel, was created by some of the most prominent bankers of the day. Including J.P. Morgan, Rothschild Banks of London and Berlin, Lazard Brothers Bank of Paris, Israel Moses Sieff Banks of Italy, Warburg Bank of Hamburg, Germany and Amsterdam, Kuhn Loeb Bank of New York, Lehman Brothers Bank of New York, Goldman Sachs Bank of New York,Chase Manhattan Bank of New York (Controlled By the Rockefellers).

"I am a most unhappy man. I have unwittingly ruined my country. great industrial nation is controlled by its system of credit. Our system of credit privately concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men We have come to be one of the worst ruled, one the most completely controlled and dominated, governments in the civilized world—no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and the duress of small groups of dominant men."
- Woodrow Wilson, reflecting on passage of the Federal Reserve Act

“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks...will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."
President, Thomas Jefferson

In 1921 the same cast of CRIMINALS gave us another non-governmental organization, The Council on Foreign Relations, also known as the CFR. The CFR has run our federal government since its inception. Its aims are clear, and with an ever accelerating
rate of success they are only a few months or few years from achieving their goal… Maybe they already have?

"The main purpose of the Council on Foreign Relations is promoting the disarmament of U.S. sovereignty and national independence and submergence into an all powerful, one world government."

- Admiral Chester
Ward - Judge Advocate General of the U.S. Navy

So if the FED keeps cutting key interest rates (it's now only ONLY ONE PERCENT) then why are mortgages still at 6%?????

Because banking is hoarding money!

I posted this tidbit on a related topic.

People go to college to figure this out?

As long as banks hoard the interest rates from consumers what the hell do you expect? A recession of the recession?

Here is what will come forward possibly in the next 2-10 years.

1. Banks and mortgage companies who posted extreme losses will be found to have cooked the books.

2. The 700 billion dollar bailout of 2008 will be found to have been raided by the same business's that put us here in the first place and the money will never make it to the consumer.

3. CEO/CFO etc bonus's will continue to be payed at astronomical (or is that camical) rates!

4. Colan exams among consumers will increase 10,000% as we try to figure out just what did they stick up our asses!

Oh good now "we" can borrow more money and spend it and be deeper in debt than before!!!  Who will be the next "bail out"????  What are these people smoking? 

This in turn should allow banks to lower their rates they charge us. Particularly since the prime lending rate also falls to just 4% with this rate cut.Will thebanks folow suit and allow more homeowners to keep their houses?, will they promote small business loans to employ more people?, will they ease the burden of this credit crunch? chuckles a little, I am thinking that would mean a cut in the executive salary, so probably not.

Like this is going to help the American people.  The bank CEO's are too busy padding their pockets on the way out.  The Fed's could go to 0% and the American people are still going to pay top dollar interest in all factions of the banking industry. 

I just saw a commercial run by Diteck lending institution. A few days ago the interest rate was 5 7/8%  today it's 6 1/8%.   Yeap sure has helped out here. 

By all rights the interest rates from credit cards to houses should be drastically reduced in comparison to the rates the banks are getting.  All the people see is the Feds keep giving to the irresponsible big guys and the people get to scratch @!$%# with the chickens! 

The only way to help is to get Bush and the Republicans out of any office. His incompetence and stupidity is to blame. If he were any kind of a leader he would have surrounded himself with intelligent people to cover up his ineptitude. I am by no means an economist but I saw it coming 3 years ago. I  got out of "the market", sold everythging in the US, relocated to another country, bought a home (paid it off) and live a good life. I am so sorry for most Americans that have fallen for the BS and have become victims of the stupidity, incompetence and greed. TIME FOR A CHANGE FOLKS!

The Feds / Republicans continue to support Wallstreet.  Rate cut to the Fed Rate is just another example.  Why not cut Prime. A rate that many mainstreet home mortgages is based on.

wallstreet gets bailed out and incented, but not mainstreet.

wake up feds and Republicans

i,m going to show my ignorance here but i want to know: why do the interest rates for mortgages stay at 5.75 to6.25% if the banks are borrowing money at 1% ? i mean, if that,s true then the banks are making between 500 and 600% mark-up and i,m suppossed to feel sorry for them?

bob layte

So the banks can borrow at 1% interest.  But the bank credit cards (VISA, MastrerCard, Discover, etc.) are still charging 20-24%.  Where's the outrage!!

If the lamebrain in the White House and his stupid financial people had any sense that average people cannot afford loans at 24%, they'd fix that problem right away. 

I heard recently that the government is unwilling to change contractual agreements, so that's why the average American will continue paying usury rates on credit card debt.  But the government was quick to change contractual agreements signed by AIG, etc., so it must be that the big money people will -- always and forever -- come up on top.

COMPOUND INTEREST nobody gets it the banks will get richer off of us- lower our rates- doubrful. They borrow at this low interest and charge us 6-30 percent and we put up with it. When they make mistakes they get bailed out while the rest of us keep paying off our notes at usery rates. And we are helping them pay off the bailout as taxpayers also. Lucky us - may I have another Sir......

So what if they cut rates? I thought the 700 billion + Lehman bros and  Bear Stearns etc were supposed to ease credit. The banks are not going to loan money to anyone they do not want to and right now they do not want to lend to anyone. The banks, that are still in business, are licking their wounds and worrying about bonuses. The administration can "jawbone" all that it wants to ,the banks have dodged a big bullet and they are waiting for the next big bailout. The banks will not lower interest rates the fed rate could go to -100 points and they will still not lower interest rates on credit cards.
The Republicans are responsible for this miss. They were in power for too long and they and the financial sector became arrogant and now we are supposed to rejoice because the fed dropped the rate. What does this mean to the people on the street? Nothing!
Miss one credit card payment and see what the bank will do for you to help you bailout.
I think that everyone who owns a home should allow it to be foreclosed then the banks will have to negotiate a new mortgage rate with you, they are not going to negotiate as long as you are making payments. They cannot afford to negotiate the loans. The banks are not going to lend They are licking their wounds and paying big bonuses while they count the bailout money. The administration can jawbone the banks forever and they will not pay any attention!

check it out. they cut the rate half a %  "hoping" to stimulate the economy but at the same time (news of 0%!) so what do the people think? well I think I'll just wait to refiance thinking the rates are going to go lower .when all this time some bank is making interest on borrowed money ...      THE POWER OF SPEECH     Hey I changed my name.never was a plummer ,but it's got to help.

We are all slaves to corporate america, we will never pay our way out, you can't buy your way out, you will continue to be a slave until we can all figure out ways to own our homes, get off the grid, power our own homes, grow our own food, and become self-sufficient.  I hope that they finally are serious about passing laws so that we as citizens can get off the grid, store our own power supply, be allowed to grow our own food in our own yards, and screw the banks with their high interest rates;  then we can figure out how to survive health care, home owners' insurance, car insurance, and so on and so on. Oh, hell, we're just screwed.

this article sounds like the media is already trying to make excuses for Barracks lack of success as a president. C'mmon. if he fails he will get the blame, just like Bush has. He cant escape it. I cant wait for the shoe to be on the other foot.

The Feds seems to be playing with and attempting to manipulate the markets with their rate cuts which will not do much if anything at all to help the public directly.

The  banks certainly will make sure that they benefit from the rate cut more than anyone else., The $125 billion they  got from the stock buying plan can be  leveraged 9 times its value for various loans.

The Dow did increase but not for long as there are too many dominos beginning to fall causing more problems. The big 3 car makers, insurance companies and the credit card bubble could welll bring more instability to the market and the economy.  

Wonder just how many institutions can we bail out before the national debt and budget deficit bankrupts us with higher taxes and even more inflation? Looks like we're in for some even more tough times ahead.

I might not be a financial expert, but common sense tells me that if you want to boost the economy, lower the interest that the normal public has to pay, so that it will lower payments, which frees up cash to be spent elsewhere, therefore boosting the economy.  The general public has NOT received any assistance, leaving us with still no extra cash to be spent.  If the government had given the 700 Billion dollars to the population to pay off their mortgages, the money would have still gone to the banks (Freddie & Fannie), but also eliviated the burden on the American citizens, so that we could continue to make purchases enabling the economy to keep on rolling.

seriously folks, why do we put up with this chit......there must be something quick and that will work besides "voting these aspholes out"........I'm game!

Banks are going to try to preserve their liquidity, and consumers are going to try to limit their exposure.  Cutting rates is not going to be effective.  And, oh, yes!  The Federal Reserve Bank is a privately owned entity;  it belongs to its member banks.  Do Bernanke, Paulsen, et al., have the vaguest idea what they are doing>?

I'm sorry I can't help but wonder what would happen IF the government would do if they were really out to help the people?  How are all these bailouts suppose to help YOU and ME?  Doesn't it make more sense for the government to give bailouts to the people?  We all need things in life and some don't have it.  Give the hard working people, (and people that lost their jobs recently) the money and where will it go?  RIGHT BACK INTO THE ECONOMY.  WHY?  People need to keep their houses, people need to feed their families, people need gas to get to and from work, or pay for transportation, People don't want to lose what they already have. To me that just makes more sense. Now the big companies are getting the money and where is it going? IF YOU GIVE THE MONEY OUT TO THE PEOPLE, THEY WILL START TO SPEND AGAIN AND MONEY WILL BE GOING BACK OUT INTO THE ECONOMY......

jwilbourne,

You gotta be kidding me, right? You arrogant, pompous, A$$es are the ones who got us into this mess and now you want to slay Obama before he even gets into office. Clinton left us with a balanced budget and jobs for everyone who wanted to work for a decent wage. You Republican dipsh$$s come in with your huge corporate taxbreaks for the rich and " trickle down economics " That is so much BS. Median wages for middle class workers has dropped 25% in the last 8 years, who was in office for most of them, REPUBLICANS. Take your elitest attitude and shove it.

Bob Layte

Lets give more low cost easy money to the fools that don’t know how to control their spending and stay within their means.  That way, the ones who know how to manage money can bail them out again through higher taxes and less services.