Posted on 02/08/2022 5:21:11 AM PST by Browns Ultra Fan
30 Trillion in debt and what do you get? Another day older and deeper in debt. What else do we get? Rising inflation and rising interest rates.
Mortgage rates are rising rapidly as The Federal Reserve contemplates 5-7 rate increases over the next year and removing their balance sheet stimulus.
And according to Fannie Mae, the share of Americans to say it’s a good time to buy a home hits an all-time low.
Yes, I want to see how The Federal Reserve will navigate the rising rate scenario in the face of $30 trillion … and growing … Federal debt load.
Instead of Tennessee Ernie Ford, I want to hear Delaware Joe Biden explain this to us.
(Excerpt) Read more at confoundedinterest.net ...
The inflation is transitory. As soon as we pay off the $30 Trillion, the inflation will fade away. No big deal.
Under contract to sell our house and just signed contract to buy where we’re moving for a job. The buyers of our home are highly motivated to get it done fast, I assume because they have a good rate and don’t want to lose it. We are a week later, and even with an 800 + credit score all but one 30 year rates were over 4%. With no points. A crash is coming.
The inflation is transitory. As soon as we pay off the $30 Trillion, the inflation will fade away. No big deal.”
The Great Depression was transitory also. Biden’s policies are pushing us that way.
Was that sarcasm? That debt is not meant to be repaid. That is the deal
Such a crash will impact very few people in my neighborhood since few houses were sold over the past year in my neighborhood.
Most of those impacted would have gotten top dollar when selling their former house.
One hopes that the sarcasm can be so blindingly obvious that a sarcasm tag is not needed.
Crash is coming based on what? Inventory is at all time lows and construction cost for new builds are very high. Plus wages are rising and white collar workers stocks and current homes have done phenomenally well to buy their next place.
the value of a good or service is always what people are willing and able to pay.
If you raise wages, in particular the minimum wage, then people have more money they are willing and able to pay, which causes the price of everything they buy to go up completely negating the increase in pay.
Inflation is a trick the government pulls on the gullible to make them believe they are doing better, when they are not.
To us old curmudgeons 4% is still so laughably low it’s funny. My first car loan as a Yute was 16%, mortgage at 12%, and anyone that had a single digit mortgage was considered a lottery winner.
A whole generation has grown up not understanding savings and putting money away while making damn good money doing so, they feel that access to almost free money is just how it is and everyone is entitled to it.
Going to be a huge rude awakening when millennials and GenZ start watching the credit cards they rely on so much jump to astronomical rates when they let them get late one time, whole lotta b*tching will be heard across their social media platforms demanding something be done about greedy banks and card companies then.
We’re closing today on a VA Loan locked in a 2.25%, this is Zero down, we’ve invested the sale proceeds form the prior house into a index fund guaranteed at 6.375%.
Rising interest rates will cause a panic and crash—but it may take months or even years.
I agree, Wheres the crash? You cant swing a dead cat around without hitting new construction around here, home building and sales are booming in red states.
You don’t remember the Jimmy Carter years where 14-20% interest rates were common for home mortgages.
My first home in the 80’s had a mortgage rate of 9-1/2%.. so 10-1/2 months of the year were all interest payments. Then again, uncle used to give you a tax break on mortgage interest back then.
Here in my small beach-side community investors are building so much that an 18-24 month waiting list exists before construction can begin because builders are completely booked.
That is awesome. So glad we got locked into the price of our new home back in November of 2020. We got locked into our rate of 3.5% near in November of 2021, and just settled 10 days ago. It took our house over a year to be built.
And would not have lasted nearly as long as it did were it not for FDR being a pro union socialist.
Plus wages are rising and white collar workers stocks and current homes have done phenomenally well to buy their next place.
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Home prices have gone up 20 to 30% in a single year. Wages have not. If one already has a house, then they can afford the next inflated house. However, anyone attempting to purchase their 1st home will be effectively shut out. the result going forward will be a finite closed set of buyers. That can’t work long term.
You will own nothing and be happy.
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