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alstry (34.96)

Problems Getting Worse?

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March 11, 2008 – Comments (1)

Fed injects liquidity to the banks and brokerage firms and dilutes the dollar, interest rates go UP.  Does rising interest rates help homeowners?

Fed lowers short term rates, foreigners dump dollars, long term rates go UP.  Mortgages are tied to long term rates.  Does rising interest rates help homeowners?  What about $109 dollar a barrel oil?

Fed raises short term rates, dollar gets stronger and long term rates go DOWN.  Does falling mortage rates help homeowners?

CPI comes out Friday.............Get Ready!!!!!!

1 Comments – Post Your Own

#1) On March 11, 2008 at 11:52 AM, StKitt (30.27) wrote:

Agreed!

It's too late for anything to help strapped homeowners or anyone else who has taken on too much debt. Only a long shakeout (two to three years, IMHO) will clear the decks of corpses.

No matter how loudly the Fed denies it, the smart money knows the emperor has no clothes. The Fed is INCAPABLE of imposing a bottom. All their "best efforts" are like a hurricane in a mop bucket, keeping volatility roiling (and fees accruing at the brokerage houses...).

So... it's come-uppance time for the debt hogs until further notice.

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