Learning/lessons from the past boom/bust in Irvine (OC)

[awgee_IHB]

oc flip - So what will Ben do?

 

[Janet_IHB]

Yeah - it's pretty damned bad.

 

[effenheimer_IHB]

awgee, I dunno. "William Poole, president of the St. Louis Federal Reserve Bank, said the subprime mortgage rout doesn't threaten U.S. economic growth, and only a ``calamity'' would justify an interest-rate cut now."

Which to me suggests that no rate cut is planned for now. It also suggests that if a rate cut does happen, it would telegraph to the market that a "calamity" has occurred, which would only pour gasoline onto the fire.

Conundrum indeed.

 

[awgee_IHB]

Indeed. And a rate cut is not the only method the Fed has to increase the money supply.