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To: Tolerance Sucks Rocks
If the Fed decides to simply fight inflation, I'll praise the Lord that I locked my mortgage rate at 5.875%!

If the Fed fights inflation, long term rates will fall.

2 posted on 05/30/2007 9:53:52 AM PDT by Toddsterpatriot (Why are protectionists (and goldbugs) so bad at math?)
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To: Toddsterpatriot

That’s what refinancing is for. :-)


3 posted on 05/30/2007 10:00:15 AM PDT by Tolerance Sucks Rocks (Will I be suspended again for this remark?)
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To: Toddsterpatriot
If the Fed fights inflation, long term rates will fall.

I'm confused.

I thought the Fed fights inflation by raising interest rates and therefore reducing the amount people borrow, and resulting in constricting the money supply. Therefore they avoid deflating the value of the dollar, so you can buy more for a dollar.

If the Fed fights inflation, interest rates are going to go up.

13 posted on 05/30/2007 10:14:21 AM PDT by untrained skeptic
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