By JLP | January 31, 2008
I was under the impression that the Fed did not want to lower interest rates due to inflation fears. I guess those fears have taken a back seat to recession fears as the Fed has lowered rates by 1.25% within a week’s time.
I don’t see how they can work in the long run especially with the housing market the way it is. I think we have backed ourselves into a corner and the only way out is to let the markets do their thing. It’s not gonna be fun, but I think it is the only way.
Now, what are your thoughts?
UPDATE: I reworded my question because it was originally kind of vague.