Today’s newly set rate at the Fed is the lowest since records began in 1954. As someone who lives in California, and has seen the bottom fall out of the housing market as the middle class finally entered it in droves, and unemployment run higher than the national rate for the past year (currently at 8.2 percent), and seen jobs not related to tech disappear, and then tech jobs slow down, may I ask what the delay was about? Did interest rates really need to rise to 7 percent or more in the first place, when it was clear the housing market was teetering on disaster?
If you check out that chart in the BBC article I linked to above, you will see that as housing markets collapsed across the country, the Fed continued to raise rates. Of course, if you were one of the unlucky Californians trying to sell a house at ANY price over the past two– going on three– years, you would not need a chart to explain this to you. And you will be probably pretty cheesed that you met predictions that the crisis will end, softly, in 2007, and not spill into other sectors, with high levels of disbeliefs, but that the people running the fed and other significant financial institutions, blinded by ideology, greed and hubris, did not.
And if you remember the whole homeownership bruhaha that attended Bush’s speeches throughout the early part of this decade, you will get really pissed off in the face of government’s delays in helping homeowners keep their homes.
I am myself operating at a high level of anger these days, and it spikes with the headlines. Thank goodness for the venting power of blogs.