I watched a few very interesting shows on the effect or non effect of future rate cuts. Normally debt would have been reduced during growth periods but rates were kept low for longer and we ended up having households and corporations piling on more debt to take advantage of lower interest rates. The money they borrowed was not necessarily used for investment so they are not earning more money on what they borrowed. As a result they are highly leveraged so the argument goes that even with lower interest rates they will not borrow more because they are maxed out. Whether this is true or not remains to be seen but if you want to watch something interesting then get on YouTube and watch How Debt Zombies Will Cause a Credit Crisis. The guy pretty much nailed it. His solution is probably not politically practical in America but there is some credence in what he is saying.