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To: politicket
Because that's the psychological mindset of Bernanke when an economy is behaving the way that it is - increase easy credit

In your mind, a 0.5% cut in the Fed Funds rate would cause "easy credit"? How does that work?

36 posted on 10/02/2008 10:47:27 AM PDT by Toddsterpatriot (Let me apologize to begin with, let me apologize for what I'm about to say....)
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To: Toddsterpatriot
In your mind, a 0.5% cut in the Fed Funds rate would cause "easy credit"? How does that work?

Let me rephrase "easy" to "more attractive".

There is no such thing as easy credit in this market - with a TED Spread hovering around 360 bp.

Good catch...I shouldn't have used the term.

Bernanke only knows to keep lowering rates to encourage more people to make efforts to get a loan. Whether those efforts succeed depends on the underlying economy.

If Bernanke lowers the rate to 0 and loans still aren't being given then we have a little bit of a problem...

37 posted on 10/02/2008 11:02:00 AM PDT by politicket (Palin-tology: (n) - The science of kicking Barack Obambi's butt!)
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