Fed cuts interest rates again

When someone thinks of cut interest rates, they commonly think "Oh, I can get a loan with less interest now."  That is not entirely true, and cutting interest rates hurts savers big time.  In the early 70's, interest rates on a savings account was 12%, that means 12 dollars a year just for having 100 dollars in the bank.  This is how banks had money to loan.  People had huge incentive to put their money in a bank, so the bank could loan out more money.  Now, with savings accounts having a mere .5% interest rate, and CD's having around 3.5%, many people don't see an incentive to saving.  More people get loans, and the bank doesn't have the money to give back to savers, causing a bank to get into trouble.  The bank systems are one of the bases of our economy.  If this economy is to thrive, higher interest rates will be needed.