Quote:
Originally Posted by pipoholic
isnt the problem that if inflation accelerates and the fed raises interests, it will worsen the whole sub-prime morgage situation, and chanses of the crisis, or whatever you want to call it, spreads to the not-as-sub-prime-morgage-takers!?
//pipo
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I was thinking of this too. I really don't know what the Fed's can do to help the situation because like you said, higher inflation will draw higher rates, thus causing a higher sub prime problem and also can damper people with good credit cause now this will cut into there earnings with higher cost.