1. Low interest rates benefit people who have lots of debt. I don’t like debt and don’t carry it.
2. The things that are affected the most are car loans, credit cards, and home equity lines of credit. If you have good credit you are going to get good rates as it is. Even if you do have good credit your credit card rates might only drop from 15% to 12%. Actually credit card companies don’t have to lower anybody’s rates if they don’t want too.
3. Lowering rates hurts people who are financially smart and save.
4. I have watched my online savings accounts with Ing Direct and Emmigrant Direct drop from an easy 5.25% being earned(pretty good for a normal savings account) to less than 3%. Thanks for nothing Fed.
5. If rates were higher it would force people to save more when they are looking to put additions on their homes, buy cars, and put things on credit because then they can’t afford the payments on any of those.
6. People would be invested more into their purchases because they would have put a down payment on any of the things they bought. No more 100% financing for anything.
7. Higher interest rates would force businesses to be smarter with borrowing money from banks. This would keep the stock markets in check because you would have a equilibrium of supply and demand.
8. I hate the Fed. Their dumb. Thanks for fueling the mortgage mess. I know its not entirely your fault, but nobody would have been able to get approved on loans if rate were higher.
9. A savings account would become a good, safe investment vehicle. This would entice more people to learn about finances and investing.
10. I like the number 10. 🙂