In another move to try and save the economy the Federal Reserve has cut it’s key interest rate to 1%. Some analysts are already calling for a move that might cut the rate to 0% in the not so distant future.
That’s right a 0% rate could be near. What does that mean for you? Well eventually savings rates would have to go down, but your ability to loan money would be better. Which for some, could be a nice relief given the recent credit squeeze that has created the need for the Fed to act in this way.
A 0% rate could signal what everyone is fearing. Deflation, little to no economic growth and the need for the Fed to act drastically to bring the US back to it’s feet after a credit crisis has nearly toppled the largest banks in the world.
So what do you do with our money? Well, we might suggest paying off debt and saving a little more in a CD or savings account. Locking into rates now before they go too low and you get nothing in return for allowing a bank to keep your hard earned cash to loan out.
But that’s just some of things you can do. Nothing is fail safe these days, except maybe sticking it under the matress.
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It’s scary what is going on with the financial markets. There are a lot of conspiracies out there, which I suggest avoiding. The good thing to do is put your head on straight and look at the big picture.
When this rate reduction stops, that’s when precious metals like gold and palladium goes off. I recommend buying soon, and there are a wealth of places online you can do that, such as at my site(see link in my signature), eBay, Bullion Direct, and many others. These are also venues where you can sell your gold as well, but I don’t recommend selling your gold right now.
Right now, save and invest for the future. Look at unconvential investments such as copper, palladium, recycling, and investing locally. This can turn into hidden gems that will make you much more money than the stock market.