[quote=AN][quote=SD Realtor]To me the slate looks like fall is dedicated to healthcare, then late fall/winter will be amnesty or some substantial immigration reform. After that pending no more largescale political issues it may start. However another part of me says that rates cannot move to much with the current level of unemployment and waiting until the 2010 elections are over may not be a bad idea either. So there are a couple of possibilities and in no way should the be tied to politics… but to me they will be.[/quote]
Talking about rates, I saw an interview with the NY Fed and he stated that the Fed’s mandate is for price stability at the lowest unemployment. The question was whether he thinks leaving the rates at 1% for too long caused the housing bubble. He mentioned that he thinks the bubble would happen w/ or w/out the 1% rate. The 1% only change the magnitude of the bubble. That’s his way of saying that he wants to keep rate at today level until unemployment heads back down to ~5% level.[/quote]
Only in a perfect world could you control rates that way. We are on the brink of inflation and the FED is well aware of it. I am willing to bet a good amount that hyper inflation kicks in before we hit 5% unemployment. That’s just not feasible in this sort of climate that rates could remain where they are. That said, anything could happen. I have been looking out my window all morning in search of flying pigs. Obama and the gang seem to have ability to pull off just about anything.
