They Did It! Now What Happens?

On September 18^th the Feds dropped the key interest rate a half  percent which has sparked excitement throughout Wall Street, sending it over 300 points today.  The Commercial banks have agreed, and quickly from what we hear, to drop their prime lending interest rates also.

What does this mean for you and me?  It will reduce the cost of borrowing money to purchase big ticket items such as homes.  Of course, even though this all happened just today it may take a few days up to weeks for us to see the positive side, but we feel better knowing that it will be coming soon.

We have a very soft economy and if the Feds didn't lower the rates then the economy could fall into a recession," said Mark Zandi, chief economist at Economy.com.