Thread: Subprime or Subcrime? Time To Investigate and Prosecute
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Old 08-10-2007, 02:35 PM
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Originally Posted by Plato Is Boring View Post
I suppose instead of lowering the ffr you would've had them do what? Should they have raised them at that point? I suppose they should've been really focusing on the housing market, when they have those little things like unemployment and economic expansion to consider. You sure don't mind telling us how great of a job Bush did with the Fed's economy (oh, it is) in the wake of September 11th.
Plato ...

Tell me if this is incorrect: When the Fed lowers or raises their rates, it has a delayed effect on the mortgage market. The Fed was looking for instant gratification and kept lowering and lowering the rates ... I believe it was 14 times. When it finally took effect, the senerio I painted took effect ... and because of artifically low interest rates, demand for housing went through the roof. Then the fed kept raising the rates to cool off the economy and inflation in the housing market ... and here we are today.

Correct or incorrect?

Vi
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