Helicopter Boy can only lower rates 3 more basis points, less than double what he did in 8 days last month – what’s he going to do, pay people to borrow money with negative rates?

We’re already at the point where lower rates are not only having negative long term affects, but short term too.

Banks are raising mortgage rates, and if they are forced by a judge to lower rates to people who can’t afford their homes, that will enrage those who do pay on time when banks raise their rates even more. It will also drive home sales numbers to all time record lows, and thus prices.

Credit card rates may go down short term, but as defaults on those rise the rates will too.

I’m waiting for the Monday morning quarterback article to come out that says in retrospect an immediate rate increase at the onset of the mortgage/credit “crisis” would have been a better response.