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  • Non-Farm Payrolls: Enough for a Fed Rate Cut? [View article]
    Please look at how Credit Card companies adjust their rates or How a Home Equity line rate is calculated, or a student loan, car loan, small business loan, or every conceivable type of loan.

    Almost everyone of them uses Prime plus LIBOR. I the past 30 days LIBOR is up more than 50%. To offset this TAX, the Fed and only the Fed can act by reducing the Prime Rate.

    IT doesn't matter whether it will help finance anything new. What matters is that the rates on everything outstanding are going to be up another 1.5%.

    Think of it as if the Fed raised the interest rate level from 2% to 3.5% in one month. This is exactly what has happened. If LiBOR doesn't drop next week and the FED does nothing, the stock market will drop like a rock until the Fed does an emergency cut.
    Oct 05 00:40 am |Rating: 0 0
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