Feds Cut Rate by 0.75%! McGuire Gets It Right!

January 22, 2008. Corpus Christi - Padre Island. By: Mr. C. KIM McGuire, RE/MAX Realtor

Back on January 14, 2008, there was a wise Realtor who forecast that the Federal Reserve Board would cut the lending rate by not 0.5%, but by 0.75%. (Ck. C. KIM McGuire's January 14, 2008 www.ActiveRain.com BLOG).

Many economic signs were in place to make this prediction. Now that the rate has dropped with an AXE, what's next? TIME! Only time and LEADERSHIP will drive the economy to happier days forward. The rate is merely an adrenaline. A quick rush for Wall Street. However, there are still many obstacles to over-come. One of which is the price per barrel of oil; that is - the cost to fill up our cars and trucks, and what that fuel cost adds to the cost of production and delivery of widgets and milk for children around the country.

With Iraq crisis becoming more controlled every day, there looms Iran. Without international pressure to keep Iran's Leader(s) in check of its motivation to destroy Israel and America, the President (current or if a Republican who believes in not withdrawing without a clear and controlled victory), will most likely not withdraw any significant numbers of troops. That means money will continue to be spent in Iraq.

Once the price of oil is controlled to around $70/barrel and Iraq and Iran is held in check, and CONSUMER Confidence is improved with Home Lenders easing up lending restrictions, then there should be more definite rebound in the economy.

Expect a sluggish economy to last well through 3Q2008.

NOW for Superbowl Prediction: Go Giants!

Note: Contents of this article are the sole opinion of the REALTOR. Just like anything else in life, individuals MUST use their own research, analytical, decision, and prediction skills!