Yes, good point. But is it supply and demand or “eagerness” to either supply or demand that is the crucial variable?
Supply and demand and real and controlled to an extent by the Fed. Eagerness to supply or demand is basically from two variables, future economic expectations and future Fed cut expectations. I think the Fed cut expectations are a bit stronger right now due to the subprime (and spreading) meltdown. OTOH, the rest of the economy is decent.