anyone have any clue how much WaMu is gonna cut their rates? h:

GMAC just lowered the rate to 4.15%... WaMu is 4.75%, but it hasn't been adjusted since the last rate cut by the feds...

 

probably at least 50 basis points.

 

speak in plain english

 

half of a percent.

 

I'm thinking of switching from BofA to WaMu. Anybody have any opinions on this move? I'm tired of BofA's shit and think I'm ready for a change. I've heard some good things about WaMu

 

they're going to raise it

 

I would think the one that earns people money on CDs and saving accounts would go up so people would make more money and therefore stabilizing shaky economic growth.

 

It's all about the cost of funds for banks. When the federal funds rate decreases, it means loans to the public, businesses, etc have lower interest rates, thereby encouraging more people to take out loans, stimulating the economy. Conversely, the money the banks use to fund those loans are from deposits. If they give lower interest rates out on their loans without decreasing how much interest their paying on savings/CD accounts, their spread decreases, meaning profit margins decline.