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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (732765)3/17/2006 2:44:54 PM
From: DuckTapeSunroof  Read Replies (1) | Respond to of 769670
 
[the 'markets' and the 'economy' ain't the exact same things.]

"That can certainly be argued,"

Well... yeah. :)

"but if the economy were in the trash can,"

Don't believe I used those words....

"then also why are rates being raise?"

To mop up the excess liquidity in the system, and because there is a good deal of pricing pressure building up from the Producer Prices (believe I mentioned those two points...), and because *that is the Fed's job* --- to fight inflation.

Rates certainly ain't rising because of labor price pressure, or because of tight factory capacity utilization rates....