Right now, the industry is still in fear mode due to massive default levels. Risk has reasserted itself into the mortgage business. This will probably subside in a couple of years at which point the spector of deflation will be extremely obvious to everyone and their mother. Rates will come down as they do in all contractions. If you consider that we’re probably in negative CPI territory at this point, 4.5% will be the old 6.5%. And there ya go. But there’s the tinfoil camp saying the US$ will collapse in June. But I dont buy it, they always over react. We’ve had devistating collapses in the past and the world reserve currency alwasy comes out on top. And that’s the US$.
