I’m a Prophet – Fed Slashes Rate to 1%

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.

See for yourself.

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!