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 : The Epic American Credit and Bond Bubble Laboratory

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: russwinter who wrote (22690)12/1/2004 12:01:07 PM
From: John Vosilla  Read Replies (1) of 110194
 
<Although the present emerging tighter stance is likely to produce pain, there is currently no other alternative that can prevent the decimation of economy's real foundations brought about by extremely loose monetary policy. However, we suggest that one shouldn't exclude the possibility that if the economy were to plunge on account of the emerging tighter interest rate stance that the Fed may make a quick reversal of its stance. Whether this possible reversal would arrest the plunge will be determined by the availability of real savings from the rest of the world. >

Another question is will lenders be able to continue such lose underwriting in the face of much higher credit losses and a flattening yield curve this next downturn. Consumer confidence to continue buying and spending by having even more access to credit is IMHO the number one issue in how this all plays out.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext