The country's bad news is my good news

With the economy in the ditch (and looking like it is about to go off the cliff) The Fed has done all it can spur lending. Super-ridiculously low interest rates are it's main tool and that is sure helping me.

Six years ago I took out a 5/1 ARM. What does that mean? It means my interest rate was fixed at 4.5% for the first five years and then would "float" every year after that based on The Fed's 1 year bond rate. So my mortgage is carrying a 3.125% interest rate this year.

Yippee!

Given the lack of fiscal stimulus these really low interest rates are likely to continue for many years. (Interest rates will only go up when the economy rebounds... which without a good stimulus won't happen.)

That's great news for me and but bad news for the millions who are being left unemployed.

How bad is it? Economist Krugman is predicting a depression. It's avoidable but at the moment there's no sign that congress or the president will take the necessary steps.