How can so many people be excited about the latest fed cut? You know, the one that lowered the federal funds rate 0.75 percent? Sure, this helps banks borrow money at a cheaper rate. It allows banks, if they choose, to pass on the savings in the form of lower interest loans. But it does nothing for me, the person trying to save money for a home.

While my money sits in a high-yield savings account, the interest I make on it keeps going down. If this trend continues, I’m not sure the account will qualify as so-called “high yield” if there’s another rate cut. Everywhere I turn for news, I read that people are worried about inflation–which, to me, seems to be a legitimate worry. The cost of gas, utilities and food continues to rise — there’s no doubt about that. And in turn people are reeling in their discretionary spending and focusing on putting gas in their cars and food on their tables. Yet the Fed continues to cut rates and increase the money supply.

I understand what the Fed is trying to achieve by lowering the federal funds rate, but I don’t necessarily agree with it. These actions seem to encourage companies to continue the risky behavior that got them in this mess in the first place. I believe it sends an entirely wrong message: “Go ahead and do what you want — we’ll bail you out again.”

I’m most peeved that the government seems to have turned their backs on those that have been responsible with their money. Why should I have to pay for the foolish decisions made by others? I think the economic landscape will get a lot worse before it gets better. My guess is that the credit card industry is next in line for problems, i.e. more people will begin using credit cards to make monthly payments just to keep their heads above water for a little while longer.

Tags: bear stearns, ben bernanke, federal funds aret, Federal Rate Cut, interest rates, JP Morgan Chase, subprime mortgages