Interest-rate seesaw tips in your Favor?

BURLINGTON, Vt. (MarketWatch)—Interest rates are like the seesaw you played on as a kid. Savers are on one side and borrowers are on the other side. In a normal economy, you want there to be a balance between these groups. The person taking a loan gets a fair deal and the person lending money through their savings makes a fair return.

The Federal Reserve board greatly influences the price of credit—the interest rate paid on a home, an auto loan and bonds issued by the U.S. government, municipalities and corporations—and when it uses its power like it did last week to manipulate interest rates, there are winners and losers...

To continue reading, view John's full article from October 1, 2012 on Marketwatch here.