Is the falling of the stock marketplace (dow) lately show any signs of when the feds droped rates on 2000?
Answers:
Alan Greenspan is not contained by charge of the interest rates anymore. Ben Bernanke is the bright Fed chairman. And he have his own accepted wisdom of how to do business near financial problems. He will probably operation next to it within a different bearing than Alan Greenspan have done.
The Dow's drop so far is miniscule compared to the 2000-2002 drop so don't count on the Fed dropping rates authentic soon. And, even if short rates are cut, that does not be determined that long rates will plunge as economically; within certainty, it ability the disparate. Long rates will rise on the anticipation of inflation. This will supply to the difficulty of the legitimate estate flea market, as more than $500 billion surrounded by adjustable mortgages reset during the first six months of 2008.