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To: Always Right

The fed will do any and everything it can to avoid a rate cut. And even that if it comes will not solve the problem.


59 posted on 08/27/2007 6:45:13 AM PDT by Hydroshock ("The Constitution should be taken like mountain whiskey -- undiluted and untaxed." - Sam Ervin)
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To: Hydroshock

Interest rate cuts are not the answer for everybody either. Such cuts hurt seniors who depend on interest income to augment their social security. And there are a lot of seniors out there, including me, who will not look kindly on having their income reduced through no fault of their own. In fact, if it were not for people who have scrupulously saved money, and banked it over the years, there would be less money to be loaned out to prospective home buyers.


62 posted on 08/27/2007 7:12:54 AM PDT by wayoverthehill
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To: Hydroshock

The unspoken factor here is that congress has spent money like there’s no tomorrow and inflation is threatening. That’s why real estate, metals (many mines are opening up again after years of being shut down) and petroleum prices are rising. The Fed doesn’t want to acknowledge the effects of overspending, so it tinkers with interest rates and money supply to defray it. But they’ll have to deal with it someday. I’m afraid that will not be a happy day.


171 posted on 09/04/2007 6:07:34 PM PDT by TenthAmendmentChampion (Global warming is to Revelations as the theory of evolution is to Genesis.)
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