'When you strip away all of the rhetoric that surrounds the rate cut, it is simply an admission by the Fed that the economy is weak, and likely tilting toward further weakness in the coming months.'
Exactly ... they might have done better to raise 25bp, and send the opposite message, that things are not fundamentally all that bad ...... never mind the truth of it, which is in any case somewhat indefinable until much later, and about which folks care much less than they do about perception ... there is worry about puncturing the real estate 'bubble', well around here i've followed real estate trends for forty years and the peak of prices always comes after the interest rate trend turns back higher, couple of times many months after ... mind you this area may be unique in this, as we are the California of Canada, near mediterranean climate and very much a retirement destination for the poor sods from the white part of the g.w.n. [we are the great part], so there is a lag as they sell there, look around, then buy here
But a fed rate of 1.25, it starts to look like J.A. Pan & Co |
