Regarding Todd Harrison's posting " Fed slashes interest rates, nothing happens":

Don't you think that statement is a bit premature? I've been watching rates in Madison, WI and a 15 year fixed rate mortgage just went from 5.375% to 4.5%. That rate will get many people off the sidelines.

The problem here is simple - WHO CAN AFFORD TO BORROW MORE?  Borrowing is not the solution - injecting cash in to the hands of the consumers is the solution - moving money from government accounts to private banks is insanity.  The major banks are hoarding cash.  Consumers can’t simply go and borrow any more no matter how cheap the rate – there are limits as to a borrowers capacity to carry debt and banks are NOT in the business of taking risk currently – read a newspaper lately Hank??  Dumb?  I certainly hope so.  Most folks are already maxed out - either we get cash in to the hands of those who will spend it on the economic front - or we forgive debt that is in good standing and existing and trade it for new debt - which makes no sense at all - thus - Paulson’s plan to revive the economy by throwing billions of paper dollars on an already staggering bon fire of the masses is the purest definition of insanity.  I originally though he had a secret agenda - now, it seems - he has no plan other than to bankrupt the nation to save the banking industry who started this mess in the first place.  I guess - considering his roots - the apples don’t fall far from the horse's rear end.

Welcome Betty!!

I'm thinking people will start spending when their jobs feel safe or we have enough emergency money to ride through this long drawn out recession...I have talked to alot of people about the economy, not one said they are going out to get a loan to buy something, If we all borrowed more, wouldn't that put us in a deeper hole years to come? We do need to pay off what we owe. Now is that time! The Feds don't seem to realize that..

In June of 2003, the fed rate dropped to 1% and left it there for a year. That was 5 years ago, mortgages with ARM resetting, 5 year balloon payments, all ending up roughly around the same time after most people are tapped out....now with rates low again and all the refinanceing going on, i'm thinking in another 5 years we will have alot worse economy than we have now!...So I am going to have a bundle of money saved up before we get into the next recession...If I am wrong, then i can spend my saved up money and still be happy.....hmmmmm

what does the Fed expect?  Japan's Fed was @ 0% for years trying to jumpstart a recalcitrant economy.  Maybe a return to the good old days of 20% down, 30 years fixed rate with good credit and a thing called a maximum debt to income ratio to homebuyers might alleviate some of the Bank's fears.

Wow, it seems everyones getting a bailout except for us the consumer, which sucks, these banks are getting on my nerves, the american people should get some bailout money also, if your among the ones that have lost jobs, cut down to parttime, then how the hell are we supposed to pay for anything, with whose money, and I dont know about you but I dont want to borrow from anymore banks, no more credit cards, the banks can keep holding onto the bailout money I dont want it, you borrow then your farther in debt.  

What has we as the people  of the world gotten ourselves into, I only have one thing to say....THAT ITS A WILD WILD MESS

Dr. White's Rx..........consume 1 case of your'e favorite alcohalic beverage per day.......then you wont give a rabbit's ass......they just don't get it........let's see ...........no job+ no money=I CAN NOT PAY MY BILLS........AND WHY WOULD I BORROW MORE MONEY TO ADD TO THE BILLS I ALREDY HAVE......THAT I CAN NOT,I REPEAT,CAN NOT PAY?????? It's kinda like watchin a dog chase it's tail........but even the dog knows when it's time to STOP........

Average debt in the US has increased every year for the past 20 years. Maybe the American public after losing record jobs, and making less real dollars every year are starting to get the point. We can't borrow our way out of recession, we can only build our way out. We must build something in this country.

We as Americans have in the last 20 years given to everyone else the very things that made us great. We no longer make TV's, Computers, Microwaves, Textiles, Furnature, Shoes, Watches, Clocks, Steel, lightbulbs, refrigerators, tools, lawn equiptment, etc (I could go on for ever)  in this country with the exception of a few high end products that few could ever afford. Yes we made all this stuff and more, we were the worlds greatest producer of all goods. Today with the help of our government we are selling out a company that once employed 1 in 10 Americans.

The feds can place the rate at 0, we will not recover until we can do something that doesn't require us to say the following "would you like fries with that?"

STOP LYING TO EVERYONE, BUY AMERICAN AND INSIST ON AMERICAN PRODUCTS, THE RETAILERS AND MANUFACTURES WILL BUILD IT IF WE DEMAND IT!!!

We need more bailouts along with zero % intrest rates this will help the stock market sky rocket.  Better yet lets have the governement pay for the 20% down payment on a house and charge no intrest everyone can have small payment and will always pay on time.  Bottomline capitalism is dead as we know it.