Money Talk

No, I will not be talking about hot guys in this post. Look closer to the crotch area. I am talking about money. First I must say that I am no econ major, nor did I take any econ classes other than the one satisfying the general education requirements. Don't laugh at me if I sound stupid.

Tomorrow the fed is going to decide if they are going to cut more. I think they will although I don't think they need to. I am not a financial expert, but I don't think things are as bad as people think. Cutting the rate more is just going to show us that they are scared. Instead, they should come out and reassure people that it's really not that bad, and perhaps pay some of these "financial experts" like Jim Cramer to say so on their shows as well. Sure, more than 50% of my liquidity is in the stock market, so I might benefit more if they do cut the rate, but Wall Street is just as unpredictable and hard-to-please as a woman (now I know why I am gay), and these babies are just going to want more and more rate cuts.

I am glad that I made a wise financial decision last week. Right after they did the emergency rate cut of 75 basis points last week, I opened a 6-month CD at Wamu and put half of my savings in there. I figured I wouldn't need that money in the next 6 months anyway, so I might as well lock in the interest rate of 4.85%. Three days later, they dropped the rate to 4%. Do I hear any applause?

I wonder what everyone thinks about Bush's stimulus plan. Apparently most lawmakers like it. I do like getting $600 in the mail, especially because I've been bleeding in the stock market. But what about the government's deficit? We (taxpayers) will end up paying for it in the end anyway. It seems to me that they are just trying to patch up a levee that's about to break with a band-aid. I also think that Bush is trying to leave a legacy behind. He wants to be the President on our history books that rescues the U.S. economy by passing this plan. Let someone else be the one that has to raise taxes and make our citizens live paycheck by paycheck. What the heck... why worry about tomorrow's problems today, right?