Written by: Beck
I hope you got your home refinance out of the way.
The FED is looking to begin
aggressively raising interest rates. This shouldn't really come as a surprise to anyone, what with how the target fed funds rate has been at 1%. I'm actually rather surprised that it took Greenspan this long to begin tightening up credit markets.
I'm suddenly reminded of all the doom-and-gloom economists who prophesied an economic stagnation like that which has afflicted Japan for over a decade now. Most of their argument went like this: "Interest rates in Japan are super low and have been for a long time. Our interest rates are now at their lowest since 1958; therefore, our economy will spend the next decade mirroring Japan's." So much for that line of thought.