I was out on my morning run early today, contemplating “The Rate”.
You know, one of the few questions I try really hard not to answer?
I always play “devils advocate” with myself, and I mean hard ball style.
Worst case scenario, best case, sideways case… what are the other angles, where else could this go?
The CBI can announce a new rate tomorrow, and the financial markets are all going to look at each other and wait to see what the other does.
As soon as one player accepts it, then another, then another… pretty quickly, the entire world is on board…
What I’m trying to convey here is my renewed conviction that an RV rate of .10 STILL makes sense to me…but the people who run the CBI aren’t stupid.
They surely know that when they change the rate, they are starting a snowball down a mountain.
Let’s get rolling, baby!