FED left rates unchanged

[Joe Flacco]

Mortgages might be loss leaders for some big banks.

 

[Dublin ohio]

A combo at fast food is not a loss leader Dublin. Or is it Dumblin?

So you have gone from the $5 specials to regular menu items which still have not come down in price

 

[Joe Flacco]

Based on the yield curve, I think they could go 50 in November and 50 in December. But we could see no movement at the long end. So not much movement with mortgage rates.

 

[Zoe]

No sense trying. You have no idea what a loss leader is. So can't have sensible discussion. Lay off the Jack

Patiently waiting for your response to my answer to your question if I understand loss leader.

 

[Zoe]

So you have gone from the $5 specials to regular menu items which still have not come down in price

I am not saying side items have not come down in price. I told you how I order on fast food when I am working. I told you the only way they could lower combo prices is because their food costs have fell. Do you understand yet?

 

[Joe Flacco]

Looks like the spread between the 10-year yield and mortgage rates is narrowing / normalizing though.

 

[Zoe]

Fast food does huge volume and their profit margins are small. Their food costs had to fall.

 

[Zoe]

Looks like the spread between the 10-year yield and mortgage rates is narrowing / normalizing though.

People with tons of cash are getting more in money. The Fed don't like the employment numbers falling.

That is why they are predicting another cut or two.

 

[Zoe]

In simple terms, think of how much business borrows money to pay their employees. Do you think that will have impact on business?

Short term loans. Bank is happy to make 2%.

Federally insured banks borrow or lend to the Fed daily. On a daily basis they are like do we give or borrow or let's just sit til tomorrow.

On the other hand many businesses just got a rate cut on what they pay the bank for their loan.

 

[J Grant]

The lower rates is not producing any more appraisal orders in my area - not yet anyway.