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Old 06-18-2009, 06:31 PM
Tightwod Tightwod is offline
Join Date: Jun 2009
Location: Whitby
Posts: 40

Neither one of those articles does anything to explain how interest rates are set. I agree rates will increase, they can't go down any further. It is not because mortgage rates are going up or that bond yields are going up. It has to do with Fiscal & monetary Policy, Micro & macro economics, and there are so many factors that go into decisions relating to these that you could never answer it. It comes down to the fact that we are in a economic slow down, governments around the world have decreased lending rates so much in an attempt to control inflation & growth and yada yada yada that the banks must also. and when you can't decrease rates any more and the economy is in the crapper and the banks loans are becoming more risky inevtiably they need to raise rates to offset their risks. But I don't really have any idea!! Ha ha!
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