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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: koan who wrote (77737)	4/15/2008 5:10:03 PM
From: Jim McMannis	Respond to of 116555

RE:"Just imagine the present sub prime problem with 12% interest rates. I am in the real estate field. The impact on the present sub prime debacle is unimaginable. It could easily turn a recession into a depression." You just answered the question "why aren't rates up"? Then again if Greenspan had left rates at a reasonable level of 6-8% there would be no housing bubble.

To: koan who wrote (77737)	4/15/2008 9:42:38 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 116555

If debtors can't pay debts at a 3.5% risk-free, why and how could the market send it to 12%? The only way the machine restarts itself again is with lower rates and/or lower risk premiums. The implication is that rates are too high right now relative to debts.