2007-09-04 18:03:16 · 2 answers · asked by carlos 1 in Business & Finance ➔ Taxes ➔ United States
They shouldn't cut it because it will be seen as a bailout of bad lenders and borrowers. This will allow house prices to fall so people who couldn't afford a home can get one. It might lower the income of elderly people living on interest on CDs.
They should cut it because it will help the stock market and it might save 1/4 point for some borrowers which might make the marginal ones hold on longer.
2007-09-04 18:10:21 · answer #1 · answered by shipwreck 7 · 0⤊ 1⤋
With soaring volatility and the impending downslide of housing. Cutting rates is the only way to ease the pain of real estate by keeping buyers in the market by increasing buying power, when they would be running for the hills if rates were to go up.
2007-09-04 18:12:31 · answer #2 · answered by The Shepherd 2 · 0⤊ 0⤋