What is your stance on the issue? What are some of the pros and cons whichever way the Fed decides to go?
the fed shouldn't cut rates. the fed's mandate is price stability, and inflation continues to be an issue. once inflation is under control the fed could cut rates aggresivley to counter a slowing economy.
for the fed to cut rates now to bail out a housing market would be irresponsible. and would encourage more speculation. keeping intrest rates too low for too long is what got us into this mess.
The majority of the people defaulting on the sub prime and ARMs are speculators. These are the people who have been flipping houses and driving the prices ever higher. I have no sympathy for them at all and we shouldn't bail them out. The housing market will eventually settle into a more reasonable valuation.
Plus, if we bail them out, then why not everyone else. I don't feel like paying my mortgage. Maybe the Feds should bail me out too.
anabuhabkuss wrote:What is your stance on the issue? What are some of
the pros and cons whichever way the Fed decides to go?
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