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Dissent(s) Ahoy!
It's tempting to say there's no chance of a Fed cut at what, whether anyone on the Committee admits
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A fellow finance prof and I were chatting one day and she said a rather profound thing about a bankrupcy. She said when the bank threatens you for non-payment just reach in your pocket, take out your keys and toss ’em on the desk, turn aronnd and leave. When Powell’s gone it will leave Trump in his own nasty encounter with the Tar Baby. (If you’re a youngster or woke, you may need to Google this reference. I’m neither so I laugh hard at the meme every time.
My father was a country banker. A failing client walked in and asked, “What do you know about the furniture business?”
“Nothing.”
“Well, you’re about to learn, “ and handed him the keys to the factory.
There are a lot of aspects to the mortgage process and related interest rates that don’t make sense to me- including why at certain times in the past, the government has gotten heavily involved in the mortgage lending process to extract a desired outcome; but yet in the face of the current home ownership crisis, the government leans closer to “hands off”.
Given that Trump has no problem with pushing the boundaries of acceptable decrees to obtain his desired outcome, if he isn’t doing anything about housing, it must be because he does not want to.
Surely there are other government programs (besides lowering short term rates) that can be introduced to get the housing market moving again- if that was deemed desirable.
Rates were kept too low for too long – so maybe “offsetting” government intervention is needed. Don’t two wrongs make a right? 🙂
H-Man, when POTUS badgered Powell that the expenses had jumped to $3.1 billion, Powell did a magnificent job to say yes that is the cost, but you just tossed in the cost of a building that was completed five years ago—– Fear the ability to rearrange the facts to fit the narrative.
Once again taxpayers can spend a fortune sending officials to Jackson Hole for the annual party. Everyone can comment and preen before the cameras and spread wisdom far and wide. I am not really complaining, we have the best system on earth, and the world won’t fall apart if an interest rate is changed a tiny bit. And, Jackson sure beats Washington DC in August.