SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Booms, Busts, and Recoveries

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: elmatador who wrote (50892)6/11/2004 10:45:56 AM
From: Haim R. Branisteanu  Read Replies (1) of 74559
 
inflation has already accelerated and what they are trying to do now is to cool the RE market and a result commodity prices.

the FED can not afford to raise rates more than 50 bp this year without inducing some systemic risk - more because the market anticipation that they are rising recklessly - which will send the longer term treasuries 2 to 3% higher in an economy not prepared for it and a big percentage of home owners on variable rate mortgages of 3% to 4%.

A 25% hike on those mortgage payments will stifle consumption to a trickle and a new recession / deflation cycle will start
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext