The 'Fed' Threat of higher interest rates?

[awake]

...OK we'll see your interest rate hike and match it with a - BRING IT ON!

Higher interest rates are exactly what is needed.... as soon as they do, it will kick in the second market clearing process they are preventing and reveal the mal-investments, thus revealing who in fact is causing the economic crisis..

[Elwar]

Reagan used high interest rates along with cutting taxes to turn the Carter economy (high inflation) around.

High interest rates would be great for the dollar. Of course, I wouldn't have been so supportive of it a few months ago before I closed on my house.

The Fed won't raise rates though...they probably wish they could go lower, the economy's crashing.

[Stary Hickory]

raise interest rates to 10,000% At least then the FED would be effectively removed from the market.

[jkm1864]

We could only hope that they would raise interest rates thru the roof. I sure hope they do because housing prices will fall and the bubble will deflate. Sucks for the people that don't have a job but something has got to give. I am worse off today then what I was 5 years ago and I am working longer and longer hitches just to get by.

[t0rnado]

They have no where else to go to now. I think Volcker had to raise interest rates to over 20% during Reagan's 1st term. Deflation is necessary!