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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (8215)9/5/2007 1:55:47 PM
From: Louis V. Lambrecht  Respond to of 33421
 
LIBOR is the "real" interest rate: the rate that balances for risks (inlation, devaluation of the currency, ...).
It becomes obvious that ant attempt of the FED to cut or lower interest rates only profits the Primary Dealers in the US and has no influence, whatsoever, with the rates banks are to pay to borrow money.
Mortgages are LIBOR based. FED rate cuts are smoke.