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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Rarebird who wrote (22857)9/21/2007 9:25:13 AM
From: elmatador  Respond to of 217576
 
Bernanke said the sell-off in credit markets could make the housing recession more severe.

then...

Yen Falls Versus Dollar, Euro as Investors Seek Riskier Assets

By Min Zeng

Sept. 21 (Bloomberg) -- The yen dropped the most in three weeks against the dollar as gains in U.S. stock futures and falling corporate lending costs encouraged investors to borrow yen to buy riskier assets.

I wonder what are those 'riskier assets'



To: Rarebird who wrote (22857)9/21/2007 1:52:59 PM
From: Elroy Jetson  Respond to of 217576
 
Rates on fixed-rate loans almost always rise when short-term rates are dropped. Dropping short-term rates do only two things in the mortgage area:

1.) Variable rate loans can decline for those with good credit;

2.) Hedge funds, and other entities which hold mortgage loans with borrowed money, will see their borrowing costs decline. This reduces their loss on mortgages they are holding. But this is unlikely to induce these groups to purchase additional mortgages.
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