Markets want HIGHER rates

Mr. Spanny may find it quite a conundrum that mortgage rates are not coming down with such DRASTIC cut in FED funds rate. But, when has the market started to take orders from the regulators? It is normally the other way around - regulators (such as FED) taking orders from the markets. Since LIBOR and mortgage rates are not responding to the cuts, I suspect the markets are signaling to the regulators that they are missing the point (INFLATION) in their efforts to save the world by trying to prop up the employment rate. However, it should be noted that previous rate cuts, in the aftermath of 911, the markets DID respond. How come markets are not responding this time around? I would argue that in 911, inflation was NOT an issue. That was why the rate cuts achieved what the regulators want.

HIGHER market rates SHOULD discourage businesses to invest in low internal rate of returns projects, which in turn should lower the demand for commodities, which in turn should deflate the current boom in commodities prices. Current Market rate seems to be WANTING that scenario because it will lower future INFLATION. HOWEVER, in their effort to secure jobs for everyone, the central banGers are LOWERING rates.

Something is wrong! Policies are now set like a socialist economy! And these central banGers are all from the so call FREE capital markets of the world. Capitalists becoming more socialists, while the socialists/communists are becoming more like capitalists. They will meet somewhere in between.

But, if history is of any guide, central banGers usually give in to the markets demand. hehehe... I stupid for one expect much higher interest rate on my deposit with all the banGs. heheheh...