16 Sep 2025 4:21 am
How does half a point drive 2/3 full points cut in lending rates..ConservativeWave » 15 Sep 2025, 7:42 pm » wrote: ↑ Ummm,,, WHO KNOWS ! ...If the Fed drops the Interest rates by 1/2 point this Thursday, and makes it sound like this is just the beginning... Mortgage rates could drop 2-3 points pretty quickly, and THEN? ...AND THEN, the Housing market looks COMPLETELY different !
Furthermore half how we got here was too much cheap easy credit flowing into assets which drives "Speculation" rather than productive investments.
Pull the Liquidity and prices start to stabilize even comeback down to somewhat more reasonable but this will also cause bank failures as people become underwater having bought at much higher prices many who will just walkaway from the house they could never afford and a feedback loop develops...
Same with the Stock Markets and Crypto if the Fed ever really knuckled down the prices would crater off a cliff so they injecting more liquidity but even the Federal Reserve and Treasury is about the end of their ropes and something will give either a Massive Recession or we finally destroy the USA Dollar for good permanently become a "Bannana Republic"