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


To: Moominoid who wrote (88590)9/9/2007 9:30:59 AM
From: alanrsRead Replies (1) | Respond to of 306849
 
I sure don't want to get in the middle of this food fight, but did want to point out that the hip bone is connected to the thigh bone, as it were. If the interbank rate were set at 15% but money was going for 6% generally there would be no interbank activity. All the rates are interrelated in ways more complicated than I care to try to get my head around this early in the morning. Feel free to beat me about the head and shoulders (figuratively) for being too simplistic, of course.

ARS



To: Moominoid who wrote (88590)9/10/2007 10:57:43 AM
From: GraceZRead Replies (1) | Respond to of 306849
 
There is no such thing as allowing the market to control that rate.

You haven't thought this through.

I'm a bank, I have excess reserves. You are a bank and you have a temporary need for reserves. Are you telling me that we need some third party authority figure to work out the price?