If the Fed raises the interest rate today.......

[Boomer]

Today, at 2:00 PM, the Fed will announce whether the interest rate is going up. Janet Yellen is slated for a press conference at 2:30.

I think they will do it this time. There certainly has been enough foreshadowing in the news lately. Words like gradual with an avoidance of words like hike. So if this is it, it should not be by much.

I am not an economist, nor am I any kind of financial adviser. I am a mere bumpkin who has owned 9 houses and can remember the days of being thrilled to have found a 10% rate after having spent hours on the phone calling bank after bank and talking about stuff like points, too.

It seems to me that raising the rate slightly should help the real estate market in TV. A rising rate can create a sense of urgency to buy. Also, in many northern areas, inventories are low so homes could sell more quickly there, too.

This post is nothing more than the musings of a woman who is typing because she does not want to work on stuff she should be working on......

So anyway, will a slightly rising interest rate create a sellers' market in TV? What other effects might it have on us retiree types?

[RickeyD]

I paid 15 % on my first mortgage in 1981 but I had no savings to enjoy the 8% CD rates. The good old days for sure ! Now I'm at 2.625% on a 30 but getting 1% on my savings. At this point in my life I need high interest rates but will probably never see those 8% rates ever again.

[Boomer]

I paid 15 % on my first mortgage in 1981 but I had no savings to enjoy the 8% CD rates. The good old days for sure ! Now I'm at 2.625% on a 30 but getting 1% on my savings. At this point in my life I need high interest rates but will probably never see those 8% rates ever again.

I think you are right, RickeyD. We will never see much on CDs again. I wonder if we will ever again see even 5%. I think the last time we could find 5% CDs was almost 10 years ago and those were for 5 years.

It has been such a long time since CDs could help retirees. Because of that, I think many more relatively conservative investors have reached somewhat of a comfort level with the stock market, maybe with solid, boring, long-time dividend paying stocks. The kind of stocks that pay you to wait.

But even so, I think it is a good idea to build a moat around around stocks, and it would be nice if that cash-moat actually could generate a little something, but.......

[JoMar]

Is the economy improving? Is the unemployment rate really dropping?

[RickeyD]

Is the economy improving? Is the unemployment rate really dropping?


No it's not, just the new normal. Middle income people are now less then 50% of our population. That leaves us to support the remaining 49% with the one percenters laughing and keeping low.

[rubicon]

There are many answers to the question posed in this topic and it all begin with this first question. Who are you? A banker or a customer? a corporation or an individual? An investment banker or an individual investor?
If a corporation in what industry? What investments did you utilize during the recession and to what extent?

The FED in my view did more harm than good as well as the government with their bail outs. They won't admit that now but in 25 years we will look back a this period and realize when the government chooses it chooses badly

Personal Best Regards:

[NYGUY]

....They won't admit that now but in 25 years we will look back a this period and realize when the government chooses it chooses badly

Personal Best Regards:

We will look back? Glad you will be able to look back in 25 years rub. Tell yah what, I will keep my smartphone with me, could you just send me a text to let me know how this all works out..:a20: