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To: skinowski who wrote (77739)7/22/2003 11:09:37 AM
From: yard_man  Read Replies (1) | Respond to of 209892
 
>>Why should they come down if there is no recovery in sight? To the contrary, the lenders might become more conservative and demand higher rates. As for the Fed - no printing press can print enough money to actually pay people for borrowing money. <<

there is no incentive for lenders to do this and there won't be. As long as the powers that be don't want to admit there is nothing they can't beat -- i.e. a dearth in capital investment -- with monetary policy.

Lack of demand for funds eventually will push rates down again ... at least the spreads -- I'm talking about something (rates coming back down) that may be 2,3 -- even 5 years into the future here. For the time being we've got Roach's "adjustment" of perceptions on deck.

We'll get reported price inflation (stuff you need to live on sans housing) that is high before the Fed is exhausted with its binge, IMO.