Here is what needs to happen....
1st - you regulate home loans, make all of the IO and exotics dissapear
2nd - you lower the interest rate back to < 5%
3rd - you wait for all of the american home owners to refinance into loans that they can afford long term.
4th - you start using the interest rate to regulate inflation again..
our problem is that we cannot raise the rate without bankrupting our middle class homeowner who took all the equity out of there home to buy an escalade and a boat.
Just a suggestion, do you think the Fed will listen to me ?
http://www.forexfactory.com/images/misc/progress.gif
1st - you regulate home loans, make all of the IO and exotics dissapear
2nd - you lower the interest rate back to < 5%
3rd - you wait for all of the american home owners to refinance into loans that they can afford long term.
4th - you start using the interest rate to regulate inflation again..
our problem is that we cannot raise the rate without bankrupting our middle class homeowner who took all the equity out of there home to buy an escalade and a boat.
Just a suggestion, do you think the Fed will listen to me ?
http://www.forexfactory.com/images/misc/progress.gif
Keep it simple stoopid....