Tuesday, July 04, 2006

Two year Federal Rate rise showing great impact on consumers

With federal rates on a steady rise the past 2 years and not to mention the rise in gas prices and other goods it is becoming harder and harder to survive financialy in todays society. In only about 2 years the overnight lending rate went up a whopping 4.25 percent. This is just an example of how the whole economy is being affected. Other sensitive parts of the economy being impacted include housing, automobile sales and financial markets. The article states that the most obvious impact is being seen in the houseing area of the economy. This is not only because of the rising cost of the materials used in construction but all the rates such as mortgages and loan rates.

Seeing all these enormous rate increases and slowing down of different aspects of the market, what do you think can be done to stop this problem. Also what do you think can be done to help the people that these impacts effect the most such as the low income households or people on disablilties.

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