Rates are coming down But at What Cost?

Our interest rates are dropping but at what cost to the economy. As the dollar weakens so does our economy. Goods cost more from imports and almost EVERYTHING we buy is imported. Oil at $100 per barrel is really putting a burden on homeowners. The dollar weakens because of the low interest rate investors (mainly from overseas) are getting on the US bonds and securities. They will go elsewhere to get a higher return ( in Euros or other currency). It is true consumers are still spending but what are they spending? They are running up huge credit card debt that they will not be able to pay back. That makes a false economy of spending money they do not even have. Does this not remind you of all the rich equity homeowners had just a short while ago? Many homeowners took their "equity" out in the form of larger loans or second mortgages and cannot pay them back either. If you are careful with your spending you can still become a homeowner. There are starting to be some reasonable buys on homes in many parts of the country. www.rateinformer.com