Higher Borrowing Costs Seen in Months Ahead

[NVMojo]

WASHINGTON (AP) - Americans' borrowing costs probably will climb in the months ahead as the Federal Reserve seeks to prevent high energy prices from causing a broader bout of inflation.

Although Alan Greenspan's 18-year run at the central bank ends on Jan. 31, the next chairman is expected to follow a similar approach to monetary policy. That means inflation-fighting would keep playing a prominent role.

A former Fed governor, Ben Bernanke, is President Bush's nominee to lead the Fed. Bernanke, 51, is chairman of the White House's Council of Economic Advisers.

"My first priority will be to maintain continuity with the policies and policy strategies established during the Greenspan years," Bernanke said last week when the president announced his selection.

more...

http://www.lasvegassun.com/sunbin/stories/invest-corp/2005/oct/31/103107779.html

[cliss]

1. Time to grab onto that bar

on the roller coaster we're on.

It's about to take a sharp dip down.

[redqueen]

2. Exactly what I was thinking.

Here we go...

[Delphinus]

7. Maybe this will be what it takes

to wake the populace up?

[AnneD]

3. make sure your tray table is in the upright and locked position...

and please return to your seat.

[SoCalDem]

4. We re-fi ed to a low rate 30 yr..cut up credit cards

we are officially back to a cash economy in our household and not a minute too soon, it seems :)

[Nay]

5. On a cash basis here, too. The only way to go. There is no piece

of junk worth going into debt for.

[SoCalDem]

6. At our age, we are happily "de-stuffing"..

Giving stuff to our kids NOW..and tossing a lot of it.. Hopefully in a few years, we can sell this place and have enough cash to get a smaller paid-for place..somewhere else probably.. CA is too pricey for old folks on a fixed income..

[oneighty]

8. Curious

What rate did you lock in? I am about to make the move to do the same.

PM me?

180

[SoCalDem]

9. 5.45 but this was back in Feb

:)

You could do better with a 15 yr fixed, but we knew we would be selling in 5 or 6 years anyway, so 30 was better for us to get a lower monthly:)

[oneighty]

10. Thank you.

I will not do that well.

180

[SoCalDem]

11. We were so lazy it cost us a lot.. We had 8.87 since 1981

(which wasn;t that bad back then)..but because we hate paperwork, we kept puttin it off.. My husband's friend at work actually got a 30 yr at 3.76 14 months before we finally refied

[oneighty]

12. Well for sure

I will not do that well.

180

[MiniMe]

13. I'm refinancing now and cutting up the credit cards.

Have to get rid of the credit card debt. I got locked in at 6.25 for a 30 year fixed, from looking elsewhere at rates it seems to be running at about 6.50 now. I'm closing on Wednesday, can't wait for all of the credit card balances to be paid!!

[conflictgirl]

14. That makes me feel very fortunate

That I just paid off my car. Now we have no debt except for our mortgage and my student loans, and do not intend to take on any additional debt. It does make me feel very sad for the people who may not have those opportunities, though.