Posted on 10/17/2023 6:26:13 AM PDT by Kaiser8408a
Too much debt!
The Federal Reserve thinks economic growth comes with lots of debt and low interest rates. The Fed succeeded in that banks, consumers and The Federal government went wild in borrowing money, but now a hangover is happening as inflation surged and interest rates rose.
First, debt laden banks.
Paper losses on the most opaque part of US banks’ bond portfolios are now close to $400bn — an all-time high, and 10 per cent above the peak at the start of the year that caused the collapse of Silicon Valley Bank.
Rising interest rates are really causing havoc at banks, particularly small banks. The US 10-year Treasury yield rose again after a brief respite in rate increases.
And The Federal government is seeing interest payments on their massive $33 TRILLION debt load. Rising Treasury yields = higher US interest payments on debt … really fast.
And with interest rates rising, Americans are seeing a surge in debt.
With rising Treasury yields, the 30-year conforming mortgage yield is up 173% under Biden’s Reign of Economic Error.
Hopefully a downturn in rent growth will let buying a home more affordable relative to rent in San Jose, San Francisco, Honolulu, Los Angeles and Seattle.
I remember when economists used to say, “Inflation? No problem! Inflation allows us to devalue the massive debt!” Except that inflation crushes the middle class and low wage workers.
(Excerpt) Read more at confoundedinterest.net ...
This is why I got debt free on a personal level after the stolen election.
My wife and I are what the credit card companies call deadbeats.
That is, we charge all of our purchases on our credit cards but pay them off in full every month. Sure, they still get paid by all the businesses where we use the card, but we get the convenience, especially a gas stations, and we get all the perks, like miles and percentages off and stuff like that. It’s actually pretty effective. It takes consistency to pay off your monthly card bill but we’re old and it just kind of comes with age. When I was younger I was at the opposite of the end of this spectrum. Credit cards fully maxed out, etc. We only have two cards and I could buy a house with these if I wanted to. But that would be really stupid. 🤣
When inflation exceeds yesterday’s interest rates, things get ugly as people lose money. Many retirement accounts rely on mortgage interest rates, and they have gone negative to inflation.
You can tell mortgage lenders are under intense pressure to get people refinanced into the much higher interest rate loans. We get two or three “offers” a week.
one would think that the average American citizen would realize that the sole goal of progressive leftists is to BREAK COMPLETELY these United States of America and make this country unliveable for those who choose freedom over tyranny but alas...most are innured and willfully blind to what is about to happen to the freedoms they now hold dear simply because they took their freedoms for granted and have not been paying attention to the reality of what they think they believe. extrapolation of current events would give them a clue but the art of extrapolation is indeed a lost art. well...we’ve had a good run.
Congratulations for achieving an impressive goal!
I love being a deadbeat.
I would have hoped that a lot of people here would have realized the day Barry the Muslim was installed, that we were now on that downhill slide to the abyss. We changed our lives around, sold the house and moved out of the city, paid off the house in AZ, bought another on and paid cash then built another one all cash. We got out of the DEBT game immediately after the arrival of Barry the Muslim.
[Interest Payments Rising FAST On US $33.6 TRILLION Debt Load, Bank Losses Mounting As Rates Rise]
We tried to tell people. The gubmint is only going to drown quicker......
We just hit the $33 TRILLION mark on September 19th and we've already added $600 Billion more and it hasn't even been a month! Have any of the so called "best and brightest" in the Biden regime tried to point out to the Imbecile in Chief that this is unsustainable?
Thank You. No Mortgage, No car payment. And the few times I use my credit card, I pay it off immediately.
Besides democrats, who would be stupid enough to refinance into a higher interest rate?
Being debt free is an exhilarating experience. You have great reason to be proud—and satisfied.
“Hopefully a downturn in rent growth will let buying a home more affordable relative to rent in San Jose, San Francisco, Honolulu, Los Angeles and Seattle.”
WhoTF wants to buy property there?
Amen on being debt-free, Brother!
I started in earnest in 2008 when the illegal Kenyan was installed. Was pretty sure it was going to be all downhill from then on. And sadly, I was right, other than the four years of slowing our demise under President in Exile Trump. :(
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They were pushing a cash out refinance. Sound familiar? Same thing that led to the 2008 crash maybe?
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