"Well, you know, we've got a lot of stimulus in the economy already from the tax cut, from the lowered interest rates, and also from the refinancing of mortgages"

Franklin Raines' statement alludes to the economic conditions and policy procedures at a particular time, highlighting the multi-faceted nature of economic stimulus. To unpack his quote, it's important to examine each part he discusses: tax cuts, lowered rate of interest, and mortgage refinancing.

Firstly, tax cuts are a direct tool utilized by federal governments to inject liquidity into the economy. By minimizing the quantity of tax people and business pay, more disposable earnings is readily available to spend or invest. This, in turn, can promote financial development as consumer costs increases, and services might expand due to greater demand for items and services.

Secondly, lowered rates of interest are a conventional monetary policy tool utilized by reserve banks to make loaning cheaper. When interest rates decrease, customers and services are incentivized to take loans for consumption or investment due to the minimized expense of loaning. This can cause increased spending on goods, services, and capital expense, even more fueling financial activity. Lower rates of interest can likewise result in a devaluation of the currency, possibly improving exports by making them more competitively priced on the international market.

Last but not least, Raines refers to the refinancing of mortgages as a stimulus. When house owners re-finance their home mortgages at lower rates of interest, their monthly payments decrease, increasing their disposable income. They might use these cost savings for additional intake or investment, contributing to economic development. Furthermore, mortgage refinancing can support the housing market by reducing default rates and increasing consumer self-confidence.

In summary, Raines suggests that the economy is being buoyed by a combination of fiscal and financial policies, as well as monetary activities such as home mortgage refinancing. These aspects work together to boost liquidity in the market, promote spending and investment, and support economic growth. However, the effectiveness and sustainability of such stimulus procedures depend upon numerous factors, including the total economic context, customer self-confidence, and global financial conditions.