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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (2781)	6/27/2003 2:01:45 PM
From: GraceZ	Read Replies (4) \| Respond to of 4906

Well let's try it again: To:Grace A. Zaccardi who wrote (2691) From: tooearly Thursday, Jun 26, 2003 7:21 PM View Replies (1) \| Respond to of 2776 good point. but you certainly are not arguing that the feds has not been at least accomadating to the consumer spending that this home appreciation has engendered? The great myth. The media started this myth because they had been programmed by other myths to expect "collapse". When "collapse" didn't happen they thrashed around for an explanation and found none, so they invented another myth. It's called "the consumer". What in the hell is a "consumer"? The other side of a "producer"? Consumer spending = GDP. So maybe you are saying, "FED wants GDP to grow". Well, of course that's true. Should they be fighting a rising GDP? The second myth is that this "accommodation" is causing home appreciation. It isn't FED's money creation which is causing the low rates, and home appreciation is exclusively due to falling rates. It's the real world as determined by all material factors as reflected in money market rates that is. If anything, FED is resisting a further drop in those rates, but belatedly is following them down.