An ill advised raise, but minor.It will be interesting to watch the press spin the rate hike (required to slow the expansion) while claiming that the expansion is going too slow, though...
5 Legislative Days Left Until The AWB Expires
An ill advised raise, but minor.It will be interesting to watch the press spin the rate hike (required to slow the expansion) while claiming that the expansion is going too slow, though...
5 Legislative Days Left Until The AWB Expires
What it means is that Greenspan does not believe the 32 K new jobs. On the other hand if the figure of 600 000 + jobs is true, and the news of the very large productivity increase (but also increase in production costs) then this raise is probably needed.
As you say it is going to be interesting to watch the media and their poodle-economists spin this. Stagflation maybe??
after the first bump, one of our loans actually went down, the other has stayed in place so far at a tick under 4%.
The composite rate for both is right around 4.50% or so..
Oh Yeah. Im voting for Hairy Kerry for sure now... (/sarcasm)
lol
This increase was factored in last week by the markets.
Today after the small increase was announced most market indexes continued their increase versus last week.
BTW, if you're not already aware of this, pls be advised that the capped rate futures mkts are pricing in about 75-76% probability of another 25 bp hike at the Sep meeting. I don't see it, m'self, given that Greenbean is completely a political animal and doesn't want to roil the waters, usually. However, he may be getting on to thinking himself politically invulnerable in front of the election (and, of course, he'd be quite accurate to think so; the Sheeple think this chap is the greatest financial whoozis since Morgan, whereas he pales in ability next to Volcker, who did all the really heavy lifting in the 1980s). However, I **never** argue with the mkts -- can't win, so why play, eh?
Good trading and FReegards to you!
It's really bad for guys like me. Commercial real estate mortgages will go up probably 75-100 basis points for the next few weeks or months till the panic subsides. Damn...I am in the middle of trying to fix two projects right now. Last week I could do my 5 year balloon on a 20 year AM at around 5.5%....bet it's over 6% now and that translates into considerably higher debt servicing and lower cash flow and will result in higher cap rates soon. I think Greenspan is too far ahead of the curve. He damaged W the elder remember. I have trouble trusting anyone married to Andrea Mitchell.