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Re: GLENO34 post# 22803

Friday, 08/17/2007 8:37:28 AM

Friday, August 17, 2007 8:37:28 AM

Post# of 385002
Gleno,

I don't get it... Why would the Feds cut the discount rate, money lent to the major bankers? Maybe I don't understand the entire process, but that really doesn't help the average people or poor folks on Alt-A/Subprime since it's not the federal funds rate that they are cutting.

It just gives the banks more liquidity because it allows them to borrow more money for less interest but I doubt the buck gets passed to the average person. May be I am wrong about the whole thing.
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