RATE Cuts a disaster !!

LNR never endorsed bank rate cuts. Keeping liquidity yes, but rate cuts- ! ? no, that will lead to de-flation as LNR warned- we cannot allow America to slip into a deflationary death spiral as Japan did many years ago and are still feeling the effects today. That Japanese deflationary spiral ended the Rising Sun into a quick sunset. American banks need to approve qualified loan applicants, while at the same time, extend mortgage ammoritization over 45 and 50 years to make the loans affordable, yet not push down interest rates where the central bank will no longer have any effective economic tools to adjust the economy.