Good for the Fed… One thing that confused me though is that even if the Fed would have lowered the rates, where would that have helped?
Just about every ARM that I know of resets to the Libor. Similarly every other vehicle is based on the long bond. The current 10 year yield is already back to being inverted. (I think) Even if the Fed did crank down the rates I guess yes that would have enabled some liquidity for banks but I just don’t see how it would have lubricated the secondary market.