Interest Rates

Posted on May 14, 2008 by Debbie Vasen

I have been overhearing some concerning conversations out there – people who are waiting for the interest rates to keep falling. Let us address this misconception about interest rates with a little background. The Fed cuts interest rates by two main factors. The first are the rates charged to the banks when the bank borrows money from the Fed or other banks. The second affects the prime rate – which many unsecured loans are based on. Still, both of these rates don’t necessarily trickle down into the two places people most use debt – mortgage rates and credit card rates. … Continue reading →

How Did Our Economy Get into This Mess!

Posted on May 13, 2008 by Debbie Vasen

If you have been following our economy’s downturn, you will most likely be able to label the number one cause – the housing market. When the real estate bubble burst, it caused a huge trickling affect on our whole nation’s economy. It wasn’t only the drop in house value that caused the spiral. The hugely growing housing bubble led to many families borrowing into their growing equity. As they borrowed against this huge asset (their home), they pumped money directly into the economy. Unfortunately, this money was “borrowed” and not real income. Still, it temporarily boosted our economy. When the … Continue reading →