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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Crimson Ghost who wrote (2830)11/2/2001 8:35:35 PM
From: LTK007  Read Replies (2) of 99280
 
<But there is no doubt that the sticky nature of longer-term rates has exasperated policy makers. This is especially the case with mortgage rates, since consumer spending has been the only prop supporting the economy in recent months. Keeping consumers feeling flush has, therefore, become a top priority. One way to do this is by lowering mortgage rates, encouraging people to refinance their home loans and put more money in their pockets.> this the key quote i think from my earlier post ( siliconinvestor.com question i have for Zeev will it work this yet another near desperate move to get consumers to keep spending----myself,i feel any move that encourages consumers to increase debt is in the long-run very dangerous--but like you are asking Zeev,will it effect the near term ticker tape?? This policy if followed by a decline in housing prices would that not lead to dire consequences? Is not the Fed frankly gambling now? What about the the surplus? etc etc.:) yadda yadda:)Max
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