Tuesday, December 16, 2008
Still another rate cut.
The fed cut it's target rate to 0%. That means it is now costing us 3.25% interest on the money we have borrowed for the build so far. Cheap. In 1989 it was 11.5%, in 2000 it was 9.5 and eventually dropped as low as 4.5%. In 2007 it was 9.25% and even a year ago it would have been 8.25%.
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