Posted on 03/26/2023 5:59:28 AM PDT by Kaiser8408a
The Federal Reserve raised their target rate just once under President Obama until Donald Trump was elected. Then raised their target rate 8 times AFTER Trump was elected. In other words, Bernanke/Yellen kept the target rate near 0% for too long. When you throw the insane level of spending by Biden and Congress on top of the massive Fed stimulus. Now The Fed is trying to remove the excessive monetary stimulus by raising rates which is crushing banks. And then we have Senator Elizabeth Warren calling for an investigation into The Federal Reserve for the banking crisis without taking any blame for the massive growth in Federal debt and inflation (oddly, she didn’t utter a peep about Bernanke/Yellen’s “Too low for too long or TLTL” when she was elected to the US Senate in 2012). She only screams when The Fed tries to raises rates. And she didn’t scream about rate hikes after Trump was elected President.
But the spate of bad news means the BBB- portion of the 14th CMBX index is at the lowest level ever and the same part of the 13th index is at its lowest since the pandemic in 2020. Similar declines are also being seen in share prices of office landlords.
So far in 2023, there has been 17 downgrades of CMBS deals with no upgrades.
At least Warren isn’t wearing that dreadful Pepto Bismol jacket she often wears.
(Excerpt) Read more at confoundedinterest.net ...
Public hangings...
We need more of what the French are feeling:
“Louis XVI Louis XVI on l’a décapité, Macron Macron on peut recommencer Louis XVI, we beheaded him, Macron we could start again”
The Federal Reserve is a Soviet-style central planning agency - highly political, ideologically stilted, and usually wrong.
Conservatives would never accept the same sort of agency over our food or medical supply (although we are getting there) but somehow believe its normal for the most important commodity of all - money and its cost.
They are postponing the inevitable crash and making it worse. Let’s party like it’s 1929.
The current situation bears some resemblance to the 1929 crash. During the Roaring Twenties, the American economy was flourishing, and people were eager to invest in the stock market, even borrowing against their homes and bonds to do so. In response to inflation, the Fed raised interest rates during this time.
Today, A new report from CoreLogic shows that many Americans who own a home and still owe money on their mortgage (which is about 63% of all homes) have seen the value of their homes go up by more than $3.6 trillion since the second quarter of 2021. This means that they have more money stored in their home than before. People have been so interested in using this money that requests for home equity loans have gone up by 30% in 2022 compared to last year. Homeowners continue to gain equity in their homes, with the value of their homes going up by 18% in the third quarter of 2022. This is the highest it's ever been, totaling $20 trillion.
How much of those equity loans were used to invest in the market, a new car or just to be able to live in this highly inflated economy? Will this be a repeat of 2008?
Home equity loans vs HELOCs: Both are seeing big growth. What that means.
The alternative is Congress.
I miss Hydroshock.
Because AOC is such a relnowned historian
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