'Outlook Not Good:' Federal Reserve Keeping Interest Rates Low

COMMENTARY | The U.S. government's Magic 8 Ball, also known as the Federal Reserve, announced Tuesday it will keep interests rates exceptionally low until 2013. "Outlook not good," this throws a light on how bad our economy really has become. Instead of doing something positive -- buying bonds or mortgage-backed securities, trying to push down rates, anything -- the Fed decided to just sit back and wait for two more years. I have the feeling this is "sports time," when two minutes on the clock could be stretched to 12 or even 20 minutes in real time.

What the Magic 8 Ball announcement says to me

"Reply hazy, try again"

Saving is silly. All that talk about putting money away for a rainy day is ridiculous. The zero-interest rate policy means my dollars will not be earning much of anything, reports The Associated Press. Plus, I cannot trust what the banks say. The zero-interest rate policy until 2013 creates a long window of near-free money for the banks. They continue to get money basically for free while charging the consumers the same exorbitant rates. This cannot be good for the country as a whole.

"Sources say no"

Get out of debt. Instead of storing up money, I plan on knocking out the last of my debt. While this locked-in interest rate may mean borrow and buy to some, for me, a person who does not play the stock market, it means to put myself in the most self-sufficient place possible.

"Don't count on it"

Plan for the future. The government is broken. No real ideas are being offered. Sitting back and doing more of the same is not working. Albert Einstein explained this years ago: "doing the same thing over and over again and expecting different results" is the definition of insanity. Instead of listening to the chatter, it's time to get extra practical and prepare for the worst. Instead of putting money in the stock market, it's time to stock the pantries.

"Cannot predict now," "Reply hazy, try again," "Better not tell you now"

Pollyanna left the building. The American people are waking up to the fact that the U.S. economy is not recovering. Worse than that, the Federal Reserve itself agrees.