Fed keeps key interest rate unchanged

The worst financial crisis in 70 years has forced the Fed to employ all the weapons in its arsenal - including cutting interest rates to near historic lows - to try to keep the country from plunging into a deep ... Full Story
Thomas

Oklahoma City, OK

#1 Dec 15, 2008
Rate reductions dont mean anything if none of the banks are lending money. Lower the rate all the way down to zero and then tell people I'm sorry you don't qualify. Oh wait, that's what the car dealers do.
William Shake A Spear

AOL

#2 Dec 15, 2008
Why doesn't Bernacke suggest that the IRS allow an investment tax credit to corporations and small businesses like the United States did in the 1970s? That was extremely effective in getting industry to start spending money to improve their plants and businesses. It also made us (US business) far more competitive in the global economy as we updated many of our antiquated industries with new technology.
William Shake A Spear

AOL

#3 Dec 15, 2008
One more idea for Bernacke and Obama: there are people out there (however, not many)with excess cash that would be happy to use it to but alternative energy stocks if the government gave then some sort of assurance that the government was going to offer tax incentives to citizens that bought hybrid cars/pickups-that switched over to solar water heaters--that invested in wind turbine farms--etc.

Congress and the President should certainly realize that in order to encourage people to do things that they must give them incentives to do so. Why don't garbage companies start basing their garbage bills based on how many trash bags they have to pick up at each person's home? You would definitely see people wasting less and recycling more if given this financial incentive. Our landfills will fill up more slowly and Waste Management could place fewer garbage trucks on their garbage route.
PJR

Germany

#4 Dec 15, 2008
They could have paid-off half the mortgages in America with the money they've blown on the bankrupt banks.

Fiat currency - it works every time!! Well, not every time, but this time will be different! Really!! We're sure!! Ignore history!!!
eaderray

Chicago, IL

#5 Dec 15, 2008
Thomas wrote:
Rate reductions dont mean anything if none of the banks are lending money. Lower the rate all the way down to zero and then tell people I'm sorry you don't qualify. Oh wait, that's what the car dealers do.
You hit the nail right on the head. Bernarke and Co. are clueless about what to do. The economy is tanking (still) because of zero confidence.

The interest rate could be zero for all concerned and nobody would be lending money because everyone is classified high risk. When COngress passed the bailout to the banks, they forgot one thing; enforcement.

Unless Washington is willing to enforce lending (rather than encourage it), the banks are just sitting on our money and shoring up their assets.

The economic engine that runs this country is out of gas, and like a fuel injected car, it requires special means to get it started again.

The President-elect drew up a game plan to stimulate the economy. Lets see how fast COngress acts to implement it. Maybe then the money will start flowing.
Thomas

Oklahoma City, OK

#6 Dec 15, 2008
eaderray wrote:
<quoted text>
You hit the nail right on the head. Bernarke and Co. are clueless about what to do. The economy is tanking (still) because of zero confidence.
The interest rate could be zero for all concerned and nobody would be lending money because everyone is classified high risk. When COngress passed the bailout to the banks, they forgot one thing; enforcement.
Unless Washington is willing to enforce lending (rather than encourage it), the banks are just sitting on our money and shoring up their assets.
The economic engine that runs this country is out of gas, and like a fuel injected car, it requires special means to get it started again.
The President-elect drew up a game plan to stimulate the economy. Lets see how fast COngress acts to implement it. Maybe then the money will start flowing.
I agree totally, the $700 billion dollar bailout is a complete disaster/failure/waste of tax money. The banks have not done a damn thing to open up lending. Of course they weren't required to under the legislation. Just give us our bailout money and we will keep foreclosing on people at record levels.

The whole bush economic team is clueless.
LocalBoy

United States

#7 Dec 15, 2008
Thomas wrote:
<quoted text>
I agree totally, the $700 billion dollar bailout is a complete disaster/failure/waste of tax money. The banks have not done a damn thing to open up lending. Of course they weren't required to under the legislation. Just give us our bailout money and we will keep foreclosing on people at record levels.
The whole bush economic team is clueless.
The bank bailout was a lie.
It was really a dollar bailout because the producing nations quit buying mortgage backed securities and in the case of China demanded reimbursement. Thus the liquidation of banks to keep them solvent as we paid China back.

This bailout has nothing to do with providing capital to the citizens and small business.

There are two type of people in the US
1) Citizens who work and live free, or used to
2) Non-producing college educated idiots who live beyond their means and produce nothing except demand for fake tits.

I guess we are learning that this country needs uneducated workers a lot more than educated idiots selling their childrens future for a BMW or new tits.
blackjack

United States

#8 Dec 15, 2008
The average consumer does NOT want to take on any more credit debt and thus won't but a new car, home or larger purchase. What needs to be done is for the government to provide a new incentive check to each tax return filing American who will do one of several things with it
1. Pay off bills thus helping them get out of debt and provide money to the banks
2. Make a large purchase i.e. car home thus helping the auto/home industry
3. save it, thus helping the banking industry
4. Spend it, thus helping the economy in general
Arnie

Duluth, GA

#9 Dec 15, 2008
Thomas wrote:
<quoted text>
I agree totally, the $700 billion dollar bailout is a complete disaster/failure/waste of tax money. The banks have not done a damn thing to open up lending. Of course they weren't required to under the legislation. Just give us our bailout money and we will keep foreclosing on people at record levels.
The whole bush economic team is clueless.
Thomas I'm sorry to burst your bubble but this mess was started way back with Billy and his buddies... Maxine Waters, Barney Frank, Greg Meeks
L O L

San Francisco, CA

#10 Dec 15, 2008
Arnie wrote:
<quoted text>
Thomas I'm sorry to burst your bubble but this mess was started way back with Billy and his buddies... Maxine Waters, Barney Frank, Greg Meeks
Sorry Arnie, this mess is really the fiasco of the Reagan presidency.
Thomas

Oklahoma City, OK

#11 Dec 15, 2008
Arnie wrote:
<quoted text>
Thomas I'm sorry to burst your bubble but this mess was started way back with Billy and his buddies... Maxine Waters, Barney Frank, Greg Meeks
I don't care who started it, bush's handling of the bailout has been terrible. I have never seen a more socialized transfer of wealth from the middle class to the upper class in my life time. The right was so worried about Obama being a socialist, they missed out on bush doing it right under there noses.

They could have stopped this early on with a moratorium on foreclosures and forcing banks to work with their customers early on. Instead they just let the foreclosures pile up at unbelievable levels and then all the banks got their big govt bailout and its business as usual.
bill p

Vancouver, WA

#13 Dec 15, 2008
What a load of BS! All these irresponsible people are getting rewarded for their lavishness! Gee, just think if everybody lived above their means! Then what? All CD rates are getting slaughtered. Thanks a lot Fed. Quit pandering to the losers. It's time for a change alright. A change for responsibility getting rewarded as it should be!
tax man

Chicago, IL

#14 Dec 15, 2008
The feds need to get the long-term interest rate down now and order every federally insured bank to temporarily offer a 4.0% 30 year loan.
lib trib

Elk Grove Village, IL

#15 Dec 15, 2008
William Shake A Spear wrote:
One more idea for Bernanke and Obama: there are people out there (however, not many)with excess cash that would be happy to use it to but alternative energy stocks if the government gave then some sort of assurance that the government was going to offer tax incentives to citizens that bought hybrid cars/pickups-that switched over to solar water heaters--that invested in wind turbine farms--etc.
Congress and the President should certainly realize that in order to encourage people to do things that they must give them incentives to do so. Why don't garbage companies start basing their garbage bills based on how many trash bags they have to pick up at each person's home? You would definitely see people wasting less and recycling more if given this financial incentive. Our landfills will fill up more slowly and Waste Management could place fewer garbage trucks on their garbage route.
there is no global warming.and that liberal economic fairy tale will send us back to the cave.
Matt

Chicago, IL

#16 Dec 15, 2008
Wrong you are. It actually started in the Carter years.
L O L wrote:
<quoted text>
Sorry Arnie, this mess is really the fiasco of the Reagan presidency.
eaderray

Chicago, IL

#17 Dec 15, 2008
lib trib wrote:
<quoted text>there is no global warming.and that liberal economic fairy tale will send us back to the cave.
It's not about global warming; It's about manufacturing products MADE in the USA. The conservation movement is strong and growing stronger. The previous poster was merely pointing out areas of manufacturing that could be targeted as potential starting points to jump start our economy. If this section of manufacturing makes products that benefit the environment, than it's a win-win.

We've moved from a manufacturing nation to a consumer nation. Now is the time to reclaim the manufacturing industry. Hi-speed rail, wind power, solar power, water reclamation/re-use. Let's make it happen and set a engineering/manufacturing industry in motion for the next 100 years.

If we can put a dent in our appetite for foreign crude, it's a bonus.
eaderray

Chicago, IL

#18 Dec 15, 2008
Matt wrote:
Wrong you are. It actually started in the Carter years.
<quoted text>
Worst president ever, despite what all the Bush-haters say.

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