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Biden's trainwreck continues.

A critical mass of 44% of recently polled residents approve of his administration.

Thanks,Big Guy,for destroying the market value of my home...which represents a substantial percentage of my net worth!

With rates at approx. 7% refi doesn’t make sense unless you really need to cash out.

I find these Confounded Interest posts increasingly shallow. While they present hard statistics, they don’t give full context. Yeah, Biden is one of the roots of the problem, but there are many more. The causes of inflation and those responsible are many. Republicans are just as much at fault for allowing endless government spending. They are on the verge of doing it again with eliminating the debt ceiling. That locks in the excess COVID spending even though that spending was never necessary and there is no longer a COVID problem.

As for the mortgage stats, they are to be expected. This happens when interest rates are increased. That’s a valid response to inflation. However, it only works when the cause of inflation is addressed. That’s where Confounded Interest misses the mark. Inflation is caused by government spending, regulation, domestic and foreign policies encouraging unproductive behaviors, and quite honestly this nation’s last two generations that don’t have a work ethic. The latter being low productivity.

The economics are simple. Inflation is caused by too many dollars chasing too few goods. Increased productivity addresses the too few goods. Cutting government spending reduces the too many dollars. Increasing interest rates reduces the amount of borrowed dollars in the private sector for business expansion and large consumer purchases.

Quite honestly, I am slowly changing my mind about any value from interest rate cuts. They will cause unemployment, which to a certain degree reduces the amount of goods in the economy. It punishes people who are actually contributing value to the economy. The people who are the root cause of inflation won’t lose their jobs and they will continue to promote inflationary behaviors.

I’d like to see a completely different approach to inflation. Specifically, massive cuts in government spending and a majority of lazy ass, unproductive government employees forced into the private sector. Yes, fire their lazy asses so they can be productive. That will save the jobs of the people who really pay the bills.