Fed Funds Rate at 1% again.

I don't see too much wrong with this, given the current climate. It's not like a bunch of unemployed people are going to rush out & buy homes.

They've gotta do something to get people who CAN spend to actually spend again...
 
Onceler said:
I don't see too much wrong with this, given the current climate. It's not like a bunch of unemployed people are going to rush out & buy homes.

They've gotta do something to get people who CAN spend to actually spend again...
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That was Greenspans thought in 02 and look where it got us, this much worse. We can only continue to distort the price system so much until the dollar ends up in total collapse. Also, the fed funds rate has little to do with home Mrtgs.
 
Obfuscate said:
That was Greenspans thought in 02 and look where it got us, this much worse. We can only continue to distort the price system so much until the dollar ends up in total collapse. Also, the fed funds rate has little to do with home Mrtgs.
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Yeah, but that was with a disastrous combo of a push to get lower income buyers into homes, as well as predatory lending & other practices which are going to be heavily monitored & restricted now.

Low interest loans on their own aren't bad; low interest loans to people who still can't afford them are...
 
Onceler said:
Yeah, but that was with a disastrous combo of a push to get lower income buyers into homes, as well as predatory lending & other practices which are going to be heavily monitored & restricted now.

Low interest loans on their own aren't bad; low interest loans to people who still can't afford them are...
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I don't think you understand the Fed Funds rate has little to do with Home Mortgages.
 
Onceler said:
Doesn't it have quite a bit to do w/ equity loans?
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Okay, my bad; I think just philisophically it makes sense to encourage activity as much as possible within reason. Since it's the bad home loans that mainly got us in this mess, I just don't see how this would be detrimental in the long term, but this is out of my realm...
 
Watermark said:
Obf, monetarism is bullshit.
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I'm sure you understand it and have seen the historical data of money supply and inflation and the consistancy of velocity and the total debunking of the Phillips Curve. Monetarism has won, Greenspan was a Monetarist before 9-11.
 
Obfuscate said:
I'm sure you understand it and have seen the historical data of money supply and inflation and the consistancy of velocity and the total debunking of the Phillips Curve. Monetarism has won, Greenspan was a Monetarist before 9-11.
Click to expand...

Monetarism was utterly discredited the day it caused the 2000 recession.
 
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