...meanwhile, inflation gallops away

[wayneL]

http://www.marketwatch.com/news/sto...472D8-3515-47DC-894B-54F758F8EE26}&siteid=bnb

Another rate cut then?

 

[Uncle Festivus]

Re: ...meanwhile, inflation gallops away.

Between a rock and a hard place comes to mind for Copter Ben & Mr Hanky Paulson! Stagflation?

 

[numbercruncher]

Its nearly funny ...... All these Interest rate slashes getting our American cousins a good ol dose of Inflation (a nice combination with falling asset prices), yet Interest rates on mortgages are rising

NEW YORK (CNNMoney.com) -- Lowered expectations for a recession led to a lift in mortgage rates this week, Freddie Mac reported Thursday.

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan rose to an average 6.11 percent for the week ending Dec. 13, from 5.96 percent last week.

At this time last year, the 30-year fixed-rate mortgage averaged 6.12 percent.

http://money.cnn.com/2007/12/13/real_estate/mortgage_rates/?postversion=2007121310

So weve seen something like 2pc in Fed cuts translating into .01pc on the 30 year rate, this is just a glorified bank bail out surely ?