Posted on 05/15/2023 6:29:48 AM PDT by Kaiser8408a
Inflatiion Joe Biden (or Unaffordable Joe). Bidenflation has led to The Federal Reserve tightening interest rates. As I said on Stuart Varney’s show years ago, “When The Fed starts raising rates, KABOOM!”
Now we are seeing US Loan Demand weakening by the most since the 2009 financial crisis.
Then we have large/medium sized banks reporting a crash in stronger demand for C&I loans.
(Excerpt) Read more at confoundedinterest.net ...
What is amazing is that houses in the markets we are familiar with (our own and relatives around the country) are still selling quickly and with offers or very slightly above or below asking.
“Recession Joe?”
Recession is an effect of earlier causes.
The cure is to increase the cost of borrowing in order to decrease borrowing. Weakening loan demand is a sign that the cure is working. Recession is a side effect of the cure.
I take it you are a graduate of the Jimmy Carter school of economics.
“I take it you are a graduate of the Jimmy Carter school of economics”
Be specific.
I thought Americans used too much credit and needed to learn to live within their means. This is from the “all economic news is bad news” world.
3-2-1 points buydowns are widespread now allowing buyers to get lower payments while sellers hold the line on prices.
Powell didn’t count on that.
Who is going to refinance a 3% fixed mortgage? There are now people moving and instead of selling thier old home, they are renting it out to keep that 3% mortage on their old home.
What happened in 1981 to stop American inflationary pressures? The Carter crew crashed the global economy
“3-2-1 points buydowns”
How does that work? We’ve always avoided points payments when we refi.
It's a game with the loan orginator. It's also dangerous because a lot of people assume that rates will go back down to the absurdly low rates we had from 2010 - 2022.
“What happened in 1981 to stop American inflationary pressures?”
Same that’s happening now. Give us some other choices.
Thanks. I was unaware of those. It sure does look like danger!
My first mortgage was an adjustable back in the summer of ‘78. It was hard to get a fixed. The bank tied it to the 11th District Cost of Funds Index which moved slowly and it was adjusted only once per year. I think it drifted up a bit the first two or three years, then drifted down. We moved in ‘83, rates had come down a lot, and we got a 30 year fixed which we continued to refi as rates dropped.
The coming Boden Recession is here. If R leadership had any brains they’d be screaming that with one voice. That’s what Pelosi and Schumer would do.
McCarthy is right on the debt limit, but when Biden allows a 2 week shutdown, they will hang the recession on Republicans, on day 1.
“The Republicans are crashing the economy and causing a recession!!!” will be shouted from the rooftops 10 seconds after the debt ceiling is reached. And, as usual, Rs will stand there with their thumbs up their butts, episode #2387816.
They MUST start screaming “Biden Recession!!!” NOW!!! So what if talking heads say “You’re talking down the economy into a recession!” Ignore them, and yell louder. So when even the news can’t hide it anymore, voters will remember the Rs predicted it.
But they won’t do that. Instead, with thumbs firmly implanted, they’ll end up saying, “No, not our fault! Biden did it!” after getting hammered for days.
So predictable. The Stupid Party walks into doors every time.
Oh damn
Had forgotten 11th District COF index
Remember tracking that back then
Guess it fell off the radar when everything started settling down in the mid-80s
I remember looking 11 COFI up in the WSJ to see where our mortgage was headed. Those were lean years just starting out and the last thing I needed was a rate hike. Thank God the index was heavily buffered and moved slowly.
No problems! Buy now!
Lemme know when NAR goes along with negotiable commission rates
The fact that many financial news reporting sites are reporting the economy is practically the best it’s ever been is concerning. It makes one think that the White House is directly them to publish only articles which reflect well on Biden. Many people take financial advice from these sites but I say trusting them is a big mistake.
If you dig deeper into reported numbers and look at the reports themselves rather than the media’s interpretation, you will find that things are not as rosy as the media makes it appear. Places such as Confounded Interest, Zero Hedge, and Wallstreet On Parade are sites where they do look a bit deeper and that’s where I go for more accurate financial reporting.
https://www.livemint.com/news/world/argentina-central-bank-to-hike-benchmark-interest-rate-600-bps-to-97-11684080293143.html
“Argentina central bank to hike benchmark interest rate 600 bps to 97%”
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