August 16th, 2007
I wish we had an Underdog, but I’m not sure we do.? Chicago Fed President Poole made the statement that only a “calamity” would warrant a rate cut.? How much more of one does he want?
The 3-month T-Bill is down to 3.78%.? A few weeks ago it was above 5%.? The 2-year is down to 4.22%.? A few weeks ago it was around 5.15%.? One of the big daddy’s, Countrywide is facing beyond serious problems.? At least we have somewhat of a normal looking yield curve at the moment.
Unfortunately, our economy has become one based and fueled by credit.? And credit is getting harder to get.? A rate cut won’t make it easier to get, but it will help the housing and home equity market stave off an even bigger drop and maybe give the economy a soft landing.
Bloomberg is another source of good articles and?commentaries.? I tend to like the opinion section the best.
You can also read, Dwight’s latest.
We will recover, it will probably just be a little slow going for a bit again.? Keep looking up.
-- By +Chris Duncan