We are a debtor nation now. Our government can try to control the cost of borrowing money but the foreign governments that buy our treasuries are going to be the ones that will determine mortgage rates. After the “credit crisis” leaves the panic stage we will see at what cost they will lend money to us. The Government for a short time can try and keep the cost to borrow artificially low, but if they have to borrow it at every increasing rates they will have to eventually pass that along. We no longer control our destiny when it comes to capital and the cost of it.
