Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Tuesday, October 12, 2010

If QE2 is targeting interest rates,

Mortgage rates and auto loan rates are already at all-time lows and down 100 basis points in the past year and yet housing and auto sales are still extremely weak. What will another 50bps or even 100bps really accomplish at a time when household debt relative to both asset and income are still closer to record highs — suggesting the need for another $5-6 trillion of deleveraging to bring these ratios back to pre-bubble historical norms?

OTOH, see this post from today.

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