Berkeley CSUA MOTD:Entry 49095
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2025/04/04 [General] UID:1000 Activity:popular
4/4     

2008/2/8-11 [Reference/RealEstate] UID:49095 Activity:moderate
2/8     Theoretically how low could the Fed be allowed to lower the interest
        to? 2%? 1.5%? Anything over 0%? Is 0% actually possible?
        \_ Technically anything lower than current inflation rate is
           'free money.'
        \_ The BOJ pursued a Zero Interest Policy for many years.
        \_ The BOJ pursued a Zero Interest Rate Policy for many years.
           \_ What's the BOJ?
              \_ Bank of Japan.
        \_ Monetary policy become useless in a deflationary environment.
           Google for "deflationary trap" to see why.
           Google for "liquidity trap" to see why.
        \_ You will probably see 0.10% before 0%
           Anyway, lower rates these days is more about saving the banks than
           lowering mortgage rates.  Mortgage securitization is dead.  Mortgage
           rates for 30yr fixed didn't drop below 5% even when the Fed Funds
           Target was 1%:  http://tinyurl.com/2zgbws (imageshack)
2025/04/04 [General] UID:1000 Activity:popular
4/4     

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