Back on 30 January 2008, I made a prediction. In response to the Fed cutting the rate down to 3%, I wrote:
Where will it stop? Allow me to make a (hopefully erroneous) prediction – interest rates will hit 1.0% by Summer 2009.
Alas, I regret to say that my prediction has come true, albeit about 8 months early! Today, the Federal Reserve slashed the Funds Rate all the way down to 1%. What does this mean? It means we can probably kiss our 3% savings accounts good-bye!
Just call me Nostradamus.
Since I am now such a widely revered prophet, I will graciously and generously bestow upon my readers five answers to your question about the future. Free of charge!
Behold! Nostradamus speaketh!
Q: How low will the Federal Funds Rate go?
A: By October 2009, the Funds Rate will actually hit Absolute Zero.
Q: How long will this recession last?
A: 42, naturally.
Q: Who will win the 2008 Presidential Election? McCain or Obama?
A: Neither. Ron Paul will win a landslide victory by write-in votes. His first executive order will be to tar-and-feather Bernanke and Paulson.
Q: So far this century we’ve seen both the dot-com and the housing bubbles burst. What bubble will inflate next? Gold? Oil? The Dollar?
A: No, no, no. Tulips.
Q: Do you have any winning lottery ticket numbers for me?
A: Uh, sure. But if you win, you have to cut me in at 3%, or whatever the current Fed Funds rate is, whichever is higher. On second thought, let’s just stick to 3%.
Here they are: 4-16-24-35-51-14. Wait a minute, maybe there should be a 42 in there somewhere….
Thus spake Nostradamus!