10-30-2007, 04:50 PM
Quote:FWIW, interest rates have been increasing stateside. It's not the high rates of the 80's, but the US prime rate has been steadily increasing over the last few years. There is speculation it will be pushed as high as double digits before it goes back down.
Obviously the argument that they haven't increased enough is still on the table. Not disagreeing with you, just throwing in my two cents:)
Cheers,
Munk
Well indeed the last half year or so interest rates have risen up till 5 % I believe (from around 2 and a half I believe??). This was of course the thing to do, but also resulted in the (small) mortgage crisis.
Tomorrow (wednesday) most likely the interest rates will be cut by 25 points to 4.5 %.
I think a small crisis is necessarry to show people that things cannot continue as they do now. Big problem with this is that the people (middle class and below) will be the victims......the big investors wont feel much.