Feds to increase interest rates ??

I am amazed and cannot believe they are actually considering this. This could only benefit the big interests.

It was amazing they sent out the stimulus package thinking they could make people spend and boost the economy. How much more ridiculous can we get !!

I would rather cut the rate a full point (1%) for 6 months. This will do the following:

1. Allow people who are in bad mortgages but still in good shape to refinance into a more stable mortgage
2. Allow the banks to rebalance their mortgage portfolio whereby we do not have to bail out the financial institutions (when these folks make a loss, its greed gone rampant and stupidity at its height, after all these are the guys who are full of analysts and they are the market makers, Shows how much they can manage their own money much less ours)
3. Provide respite to homeowners and give them relief in terms of their monthly mortgage payments and hence allow them to retain homeownership
4. Inflation will not go rampant as most folks will now be cautious about just spending away (and if they are stupid enough to do that, well it will stimulate the economy without us having to hand them a check)
5. It will stimulate employment as someone has to process all these loans
6. It will stablize the housing sector

When the dust settles, we can look at other options, but bail outs and increasing interest rates is not the first choice.

The inflation numbes can be cooked any which way but the major contributor is the price of oil, not out of control spending by the common citizens.

I hope they start taking some serious steps that make sense instead of politicizing the situation.

God bless America and lets hope we do the right thing this time around.

Please respond with your views