Posted on 01/03/2023 4:54:16 AM PST by MtnClimber
What do you think is going to happen in 2023 as real-estate prices fall because mortgage rates have doubled?
First of all, nobody knows what will happen next with the economy. On the one hand our Democratic friends seem to think that their supercalifragilisticexpialidocious omnibus spending bill and glorious Inflation Reduction Act are already steering us to the green and pleasant land of woke Jerusalem.
But then you have Jeffrey A. Tucker saying that the end of negative interest rates ain't gonna be a walk in the park. Sez he:
Most people under the age of 40 have no financial experience in a world of positive interest rates for most dates of maturity… When Ben Bernanke pushed his new policy [back in 2008], he was flipping all economic and financial logic on its head.
See, ever since the Crash of 2008, interest rates have been less than the rate of inflation, to help revive the economy, courtesy of Little Ben Bernanke. Until this year.
Back in the 2000s, real-estate mortgage rates stayed pretty constant between 5.5 and 6.5 percent. But short-term Treasuries went from 0.95 percent in 2004 to 4.9 percent three years later in 2007. Then we had the real-estate meltdown of 2008 and the Great Recession.
That was nothing compared to 2022.
In 2022, 30-year mortgage rates have gone from 3 percent to 6.5 percent in one year.
(Excerpt) Read more at americanthinker.com ...
I expected the Biden regime to do exactly what they did and expected the results that happened and are still happening. What idiots these people are.
I don’t know if there is an economic “Bomb Cyclone” on the horizon, but I’m glad I’m debt free. No mortgage, No car payment.
All these write ups are just suger coating the true disaster that is coming.
Yes.
Amen!
I want liz chennys advisor, her assets went up 600% in 2 years $7-$44 Million.
2023 will be in future textbooks.
If we still read books in the future...
S&P 500 is down 20% since it topped out exactly a year ago on Jan 3, 2022. Usually with that kind of slooowwww decline it goes down at least 40% -- ala 49% decline from spring 2000 to fall of 2002 (2 and a half years) or 56% decline from fall of 2007 to March 2009 (1 and a half years).
If it goes down rapidly as in 30% in a few months -- ala 1987 and 2020 -- it has a tendency to bottom out at 30%-ish and rapidly go back up. But it took 9 months to go down 30% this time (January to October 2022), so I stayed out.
It looks like I’m going to need to buy me some Battle Vision Storm sunglasses and a bigger cyclone bomb snow shovel.
No, not ahead, it is here now.
We’re in the middle of one. I don’t expect my well thought out retirement portfolio to continue to fare me well into a Biden (or any democrat) administration. 2 years of utter destruction so far and the dopey republicans just scratch their vacant heads.
Since I now have to work until I die due to econamic destruction caused ON PURPOSE by the Biden Regime, I am just spending and forget saving. F it.
We’re in a *recession* now, and will go into a *depression* in a few months. Prepare for it.
Feds need to lower interest rates now.
Get your basements ready the unemployed kids are coming home to roost.
I don’t think that they are going to lower rates any time soon. The rate is still far below the inflation rate. I think there will be two more increases and then the Fed will hold rates high for much longer than anyone expects. Leftists always ruin economies.
so I stayed out.
So did I mostly. The problem is inflation has over taken my gains last year...4% in short term treasuries verses the supposed 7-9% cpi increase. On the face it looks bad BUT 4% up is better than 20%, or more, down IMO!
The problem is I don’t see it improving soon. Looking at the firms that have huge capitalizations, they do not have revenues to support their size. PEs in the triple digits and dividends of near zero in many of the tech companies. Worse, as individuals retire and begin drawing down their 401s and with fewer workers buying into 401s, things look bleak to me especially with the FED trapped into raising rates to where they should have been to rein in the crazy deficit spending Congress and administration. Remember, cash, stocks, and other financial paper is exactly that, paper. A Fahrenheit 451 is coming.
“I want liz chennys advisor, her assets went up 600% in 2 years $7-$44 Million.”
Hmmm, I wonder how a repulsive human being with no discernible talent in any area manages to get rich?
Oh, wait...I think I have an answer......
Probably now an economic “atmospheric river” given the new hysterical language.
That said, we are indeed heading for something very bad, I fear.
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