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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST

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To: elmatador who wrote (22854)9/21/2007 9:06:16 AM
From: Rarebird  Read Replies (2) of 217580
 
<<They face an inflationary threat and do not want to import an INTEREST rate policy set for the recessionary conditions in the United States".

The cut in short term rates, which was intended to head off a recession, seems to have generated more problems for the real estate market. Instead of going lower, longer term rates have actually turned up.

Most real estate transactions are not done relative to overnight interest rates, but to longer term rates. The Fed rate cut now makes it more likely that problems in the real estate market will spill over into the economy. The bond market is clearly saying that this move from the Fed is inflationary. The POG is speaking volumes too.
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