Forget about a rate cut !

Discussion in 'Economics' started by sobemark, Mar 15, 2007.

  1. [​IMG]
     
    #11     Mar 15, 2007
  2. THAT's GREAT !!! , lol
     
    #12     Mar 15, 2007
  3. balda

    balda

    I think rate cut is coming this summer due to housing numbers.
     
    #13     Mar 15, 2007
  4. dhpar

    dhpar

    how cutting fed funds help housing market?
     
    #14     Mar 15, 2007
  5. nothing can help the housing market ..
     
    #15     Mar 15, 2007
  6. balda

    balda

    Can or cannot is not the question, will the fed try?

    what is the purpose of the rate cut?
     
    #16     Mar 15, 2007
  7. Of course we're all speculating here, but seeing that we are, I might as well throw my guess in as well.

    I think the Fed won't help housing. I believe they understand it is an asset bubble that needs to have the air let out, and it is too far underway to change the speed in which the air is being let out. I think it's a grin and bear it situation.
     
    #17     Mar 15, 2007
  8. dhpar

    dhpar

    I second on that.
     
    #18     Mar 15, 2007
  9. agree as well.
     
    #19     Mar 15, 2007
  10. jem

    jem

    serious question. a rate cut or a series of them does stimulate the economy by providing cheaper money.

    But, by all reports there is tons of money out there looking for a home.

    And a rate cut might not have the effect or lowering the 10 yr or 30 yr yield.

    A rate cut might have an effect on two year arms and the like. But to have an impact on housing it would have to be a couple points along with a easing of restrictions on subprime lending.
     
    #20     Mar 15, 2007