elwind45

Pending Fed Rate Decision, Dollar Loses Steam

Just because the credit is being pumped into the system doesnt mean it is reaching the economy. This credit is targeted to the banks balance sheets. The fed is restricting credit for growth. The banks are hoarding the liquidity. An example would be mae and mac.It would be better in long run to allow the foreclosures to continue. Having the government on the hook for the asset, and bakstopping the loss is easy street for the mortgage holder. Just empty the house and move on. A rate cut would help the I-banks balance sheets and since they have tied themselves together, if one fails they all go down. This economic blackmail has no end. It would be better to enter a sweepstakes on naming the new system than to worry about what if's. Take 2% down to zero what the heck? Its F'N over, over over over over get it?