oops, guess that poll question range was too wide, not specific enough

[netmouse]

For those who answered (some form of) Yes, a certain loan interest rate seems excessively high, the majority responded that "too high " starts between 5 and 25 %, and I'd like to see a breakdown on that. Please answer this question too!

[Poll #1343223]

Comments

[grndexter.livejournal.com]

FYI - (for those who don't know)

Today's WSJ says prime is 3.25%.

The "prime" interest rate is the rate set by banks. It is usually set at 3% over the Federal Funds rate (but can be higher or lower) When you hear about "the Fed" raising or lowering rates, it's the Fed Funds Rate they're talking about. Then the banks decide where to put Prime. Most banks and credit cards and such use the "prime" as their benchmark to adjust rates for borrowers. For example, my ARM mortgage is readjusted every April 1 to "Prime plus .75% with a minimum of 6% and a max of 16% and a maximum swing of 2% per year."

The inflation numbers put out by the US Government are DOMESTIC ONLY - which means that the Nov '08 CPI was minus 1 (deflation), but for total inflation you must also consider the movement of the dollar against world currencies.

For the bulk of the Bush administration, the domestic US inflation rate was below 5% (usually 2% to 4% or around there) HOWEVER the US Dollar fell against world currencies by over 50% in those same years (40% just from 2000 to 2007, an indication that the decline in the value of the dollar is accelerating).

A 50% drop in the value of the dollar over 8 years gives you an inflation rate of 6.25% per year minimum - not counting domestic inflation. (The domestic inflation rate is based on the cost of a "market basket of goods" in the US and is not connected to the value of the dollar in international markets.)