Fed Cuts Interest Rate To 0.25%

The Federal Reserve Cut Rates on Tuesday to an unprecedented level and this will hold sometime to come. What does this mean to the average consumer. Those with adjustable rate mortgages, credit cards, home equity lines of credit and business loans will enjoy a decrease in the interest they are paying on their accounts. Is it going to be enough? Many speculate that if this doesn't work the Fed will have few other alternatives. In fact to make matters worse, John Silvia, chief economist at Wachovia, said he thinks the Fed set a range for the rate rather than give a specific number as portraying that it has difficulties controlling the rate in the market when rates are this low. The rate may even fall below Zero at times! Anything to keep the economy going the Fed is going to try. In the long run though this hurts the value of the Dollar and in many cases as the ones that usually follow when the Fed drops the rate at which is lends money, it floods the market and our dollar looses value. Our dollar had made a great run on the Euro but with Tuesdays drop and insecurity with what rate the Fed is lending at it's off to the races with the dollar left behind again. Gas prices will most likely see an increase over all as our dollar becomes further devalued. Property prices will also continue to drop as the credit markets continue through their deep freeze. We are seeing in most cases that our clients have no other choice than to sell their properties for what they can. Many times at a loss. We have had great success getting them a release of lien in many cases but still many find themselves upside down and continuing to seeking their life savings into properties that will not be anywhere close to the value they were during the peak of the last market bubble. It's tough that we have to face it but at least we have the experience the is making the difference and helping out hundreds of homeowners getting out of these tough situations.