Quote:
Originally Posted by I_H8_Crawford
It wouldn't shock me if there was some political pressure on them to drop rates now - hopefully increase some consumer spending, make the economy look a bit better in time for the election...
Next rate announcement comes soon before the election, and it would probably look bad on the government if the rate were to be dropped then instead of now... people going to the polls would definitely remember an announcement that rate is dropped b/c of recession a few weeks before election, vs. doing it now, months before said election.
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I think it's a too big, out too "macro" of a view. This rate drop is good for highly leveraged companies, bad for actual people. More consumer debt is bad. Industrial debt is good