PAMGAVILA39
01-02-2023 04:25,
Hello
For me it seems that the market had turned about on what they were crying a mouth (or so) ago, and I am speaking to the US's macros.
So, I see on FF's news thread which futures indies that a 100% rate cut this month, because of the sub-prime loan issues. However, I don't see anybody going in on details with this particular actuality.
In the first place a 0.25 stage rate-cut will not help so much (following my personal oppinion will not help at all individuals) and going even far with this rate cut won't create any merchandise in any way, just think at inflation, and again, using a lesser rate more bad-record-borrowers, will borrow money, at reduction levels, creating something like a spiral of loans.
In the second area, bush-adminiion stated will try to intervenes in this problem, I really don't know how, but I truly think not by a rate cut announced by Bush in front of the planet.
Bernanke stated on every public appearance (before the sub-prime) that inflation it the problem. So, if until now inflation has been the problem, by a rate cut will create even bigger inflationary pressures. On his newest interviews, he said that he will try to act only when honest(and great ) borrowers are influenced from the sub-prime. I recently read that only 1 percent of AAA have problems paying their loans (that is a really small percent, and not mandatory related to sub-prime).
I am awaiting your answer regarding this problem.
For me it seems that the market had turned about on what they were crying a mouth (or so) ago, and I am speaking to the US's macros.
So, I see on FF's news thread which futures indies that a 100% rate cut this month, because of the sub-prime loan issues. However, I don't see anybody going in on details with this particular actuality.
In the first place a 0.25 stage rate-cut will not help so much (following my personal oppinion will not help at all individuals) and going even far with this rate cut won't create any merchandise in any way, just think at inflation, and again, using a lesser rate more bad-record-borrowers, will borrow money, at reduction levels, creating something like a spiral of loans.
In the second area, bush-adminiion stated will try to intervenes in this problem, I really don't know how, but I truly think not by a rate cut announced by Bush in front of the planet.
Bernanke stated on every public appearance (before the sub-prime) that inflation it the problem. So, if until now inflation has been the problem, by a rate cut will create even bigger inflationary pressures. On his newest interviews, he said that he will try to act only when honest(and great ) borrowers are influenced from the sub-prime. I recently read that only 1 percent of AAA have problems paying their loans (that is a really small percent, and not mandatory related to sub-prime).
I am awaiting your answer regarding this problem.