Low Rates Will Work for the Economy
The Federal Reserve said Wednesday interest rates would remain low until 2014, a year longer that was previously estimated. This was a good move. It shows that the Fed is willing to do what it takes to revive the US economy. More so, a continued low-rate environment will slowly but surely boost bank lending.
The doubling up of households -- kids moving back home with parents or couples with in-laws -- can only last so long. At some point the hormones kick in and people want to be independent again. After the Great Recession, the rate of household formation fell off a cliff. According to U.S Census Data, before the housing bubble burst in 2007, 1,627,000 new households were created, topping off a decade average of 1,499,000 new households a year. But in 2010, that figure was down to 357,000, a drop of 78% percent from three years before....363 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
