To: FreedomCalls
It can't happen. If they cut the rates too much there will be no one to buy our government bonds -- the way we finance our public debt -- and then we are really screwed (unless we cut spending). It's a delicate balancing act. That's not true. Longer term bond rates are set by the market. The Fed rates only affect the shortest term securites.
51 posted on
11/09/2006 6:39:51 PM PST by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Moonman62
Wasn't there a point where the Japanese cut their interest rates to zero percent and the real estate market nevertheless continued to fall?
53 posted on
11/09/2006 6:50:08 PM PST by
FreedomCalls
(It's the "Statue of Liberty," not the "Statue of Security.")
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