http://mgpaquin.wordpress.com/2012/09/17/keller-and-krugman-27/ Dragging stuff out from behind firewalls Tue, 21 May 2013 14:15:04 +0000 hourly 1 http://wordpress.com/ http://mgpaquin.wordpress.com/2012/09/17/keller-and-krugman-27/#comment-21407 Mon, 17 Sep 2012 14:52:23 +0000 http://mgpaquin.wordpress.com/?p=3977#comment-21407 I understand the stock market’s reaction and the incongruous response to QE by Romney. Longer term short interest rates don’t imply immediate home buying since it says u can apply the brakes and wait for the price and home u want rather than rush out as few buyers did in early summer according to the mortgage rate responses. On the other hand increasing rates of inflation don’t translate into savings for the average home buyer. At what point do interest rates return one to less speculative shopping? Well under Volcker and velocity higher rates brought out the middle class to call upon a broker of stocks and start nibbling at far far away listing names. But today those same buyers and their younger cohorts are already muddling along in the life cycle funds and to a large degree are monetizing the debt private corporations are possibly still buckling under. If GE or United Tech were doing so well they’d be hiring regardless of the crowd because they know they have to get out of the gate first. If borrowing costs can only rise why would one be selling into it for cash unless one is bankrupt. It should come as no surprise that a hedge fund will buy into this river of money rather than suspend operations seeking a fast buck and channel its energy into spreading lies.

]]> http://mgpaquin.wordpress.com/2012/09/17/keller-and-krugman-27/#comment-21406 Mon, 17 Sep 2012 14:28:36 +0000 http://mgpaquin.wordpress.com/?p=3977#comment-21406 Selling short investments to cover long opportunities is short sighted and ineffective. It’s window dressing.

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