The automatic stabilizer is unemployment insurance, food stamps, additional coverage of Medicaid.
More Quotes from Franklin Raines:They flooded liquidity in the marketplace but the mortgage rate is based much more on expectations of inflation. So if the average investor believes that there is inflation coming, they'll move that rate up.
When they had difficulties they've had a tendency to lurch to the right and out of the mainstream, and we hope that doesn't happen this time,
We think if the economy remains weak that we could see mortgage rates trail down and we think that we could see rates below seven percent into early next year.
Right now the long-term investors are telling us that they're not as concerned about inflation and so we're seeing these rates now move into the marketplace and out to the street - rates that individuals can get.
It creates a contrast between their ideas and ours. We are perfectly happy to be judged by that contrast.
Right now we think that rates will stay low, that you'll be able to get a mortgage below seven percent and that's kicked off a refinance boom that's going to put more money in the pockets of consumers.
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When a society abandons its ideals just because most people can't live up to them, behavior gets very ugly indeed.
Whenever you do a thing, act as if all the world were watching.
I spend a lot of time writing in New York.