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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: Jim Willie CB who wrote (2280)7/16/2002 9:48:32 AM
From: Jim Willie CB  Read Replies (2) | Respond to of 89467
 
Dow retraced roughly 3/8-ths of yday's PPT-led recovery /jw



To: Jim Willie CB who wrote (2280)7/16/2002 10:33:04 AM
From: mt_mike  Read Replies (2) | Respond to of 89467
 
It appears now as though the Fed has to reinflate as no one wants deflation. If the fed cuts rates several times before the end of the year (which I think will happen as consumer confidence sinks) how low do you think mortgage rates go. Do you think we get to 5.5% on a 30 year. Also, if rates get pushed that low the real estate bubble will continue to build and delay the collapse for a period of time. How long does the bubble last before it pops. I know I made the above questions a little simplisitic as mortgage rates are driven by more than the bond rates.
In any case, reinflation is the best scenario for gold. I think gold goes over 330 with the first 1/4 point cut.



To: Jim Willie CB who wrote (2280)7/16/2002 1:34:28 PM
From: habitrail  Read Replies (2) | Respond to of 89467
 
<<it will bring yet another real estate refi boom
and will ensure an eventual housing crisis>>

I don't think people will be so tardo as you hope.
Even J6P can smell fishiness in this environment.
In the face of lower interest rates, people may start to think "waidaminnit, what's the catch?"
This will slow everything down to the point where you are forced to sell your gold to buy costco provisions and then gold will pop while you wave bye-bye.