Asset Management Tips

For many Americans, the effects of the Federal Reserve's aggressive rate cut will be swift and striking. The average borrower could save hundreds of dollars within a few months - and the average saver could lose just as much.

Fortunately, as far as the strength of the consumer-driven economy is concerned, there are fewer people relying on the income earned by their investments than there are people heavily in debt. With $2.5 trillion in consumer debt outstanding - and trillions more in home equity lines of credit and adjustable-rate mortgages - a cut of the magnitude made last week can translate into billions of dollars in spending power.

It's bad for seniors who are living on fixed incomes, but this gigantic baby boom generation is largely made up of borrowers, said Gary Schlossberg, senior economist with Wells Fargo Capital Markets in San Francisco. read more