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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (34714)	6/30/2005 4:50:07 PM
From: Mike Johnston	Respond to of 306849

FED looks like it will continue to raise rates - looks like Greenspan wants to leave doing the right thing. The real test will be, when Wall Street and real estate industry start screaming to halt increases, which might happen above 4% if they get that far. It would be better if Fed meetings and decisions were conducted in secret, like in the old days. Now, the Fed is not really independent, too much political and public pressure. They are expected to cut rapidly in times of trouble but a 50 basis point increase is a no no even in a booming economy when such increase would be very justified, for example for removing emergency accommodation or to slow a housing bubble. Also, too many average, working class people know what the Fed is, which i suspect wasn't the case in the old days. Even the plumber that i used recently was discussing the Fed.