Now Sarah everyone's going to be right Eventually but they set it at three Nothing broke four five and now we're Talking six Mine interesting about that if you think About whether or not we were under Pricing what the Fed was going to do Which arguably if three was the limit we Were under pricing that six months ago I Wonder now if six percent is starting to Overprice a little bit although you know Maybe we could get up to touch there for A period of time I think really the the The the biggest thing that stood out to Me from what he was talking about Yesterday was you're using backward Looking data for forward-looking Action Which is raising rates and I think That's the most difficult thing I mean I Know that you guys earlier this morning Were talking about the whole long and Variable lag issue and whether or not That's as any meaning and whether or not That's an older statistic but I do think That there are parts of the economy for Which those changes don't happen so Quickly and very often like a lot of Contracts are priced yearly a lot of Things happen on a not quarter to Quarter basis and Wall Street is so used To focusing on the quarters that we lose Sight of the fact that you know wage are Wage negotiations don't happen every Time the bed changes rates it happens
Once a year or once every couple of Years depending on the industry so I Think that there is an argument to be Made that some of the effects are not Being seen yet but I also think you're Starting to see some issues in the lower Credit markets you're seeing subprime Auto you're seeing some of the subprime Credit card start to see more charge Offs and I think that's a sign that Things are getting tougher especially on That lower end
