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Politics : Foreign Affairs Discussion Group

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To: TimF who wrote (262786)	4/28/2008 12:16:56 PM
From: c.hinton	Read Replies (1) of 281500

Tim ,inflation expectation is different from inflation . what people expect in the future determines the cost of long term loans. also you have left out the risk factor in new lending...banks are given money cheaply now by the fed... but are they passing on the savings? NO! they are rebuilding their earnings by charging higher rates and only to low risk borrowers.

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