Harry muses about how Ben Bernanke is introducing new rules to restrict exotic mortgage lending in the U.S.:
"Now that the horses are running loose on the freeway, the Fed is finally going to close the stable door."
I love that line, very well said.
But could the same not be said about the recent moves in Canada to eliminate 40 year mortgages and other loose lending standards?
4 comments:
INTEREST RATES SHOULD BE RAISED TO PUT REAL SHORT TERM INTEREST RATES ABOVE ZERO.
MOST INVESTORS ARE SCARED BOYS RUNNING AND HIDING UNDER MOMMY'S SKIRT WHICH IS CALLED LOWER INTEREST RATES.
INTEREST RATES SHOULD BE RAISED TO PUT REAL SHORT TERM INTEREST RATES ABOVE ZERO.
MOST INVESTORS ARE SCARED BOYS RUNNING AND HIDING UNDER MOMMY'S SKIRT WHICH IS CALLED LOWER INTEREST RATES.
Juan Peron,
I agree, the Fed is between a rock and a hard place. If they lower rates it will crush the Dollar and push inflation higher.
The current concern though, has shifted from inflation to deflation. The economy is very fragile right now. They can't raise rates now or the economy will go into a tailspin.
Where are you posting from juan?
I agree rates should be higher. Savers are being punished. These negative rates should kill the dollar and benefit gold prices sooner or later, soon as this deflationary phase passes.
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