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Federal Reserve Raises
Key Rate Target to 2.5%
Wall Street Journal ^
| February 2, 2005
| GREG IP
Posted on 02/02/2005 11:42:34 AM PST by presidio9
click here to read article
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1
posted on
02/02/2005 11:42:34 AM PST
by
presidio9
To: presidio9
Bush needs to rain in the Fed bank if housing dips too much.
2
posted on
02/02/2005 11:45:01 AM PST
by
sr4402
To: presidio9
They must see some good signs of economic growth over the next few quarters that may need the reins pulled to keep it from becoming over-inflationary. Keeping a steady growth without the spikes.......
3
posted on
02/02/2005 11:50:08 AM PST
by
Red Badger
(ANONYMOUS IRAQI VOTER: "I dipped it deep as if I was poking the eyes of all the world's tyrants.)
To: presidio9
Heck I hear this morning it was going to be raised a 1/2 point........
4
posted on
02/02/2005 11:54:42 AM PST
by
OXENinFLA
To: OXENinFLA
5
posted on
02/02/2005 11:55:08 AM PST
by
OXENinFLA
To: sr4402
"Bush needs to rain in the Fed bank if housing dips too much."
No financial expert here, but from what I understand we're experiencing a rate hike in short term rates but steady to falling long term rates.
This should insulate the housing industry at least for now?
6
posted on
02/02/2005 11:55:38 AM PST
by
Ramcat
(Thank You American Veterans)
To: presidio9
Fed Reserve Technocrati strike again...
Marx would be proud.
7
posted on
02/02/2005 11:56:36 AM PST
by
adam_az
(UN out of the US! - http://www.moveamericaforward.org/?Page=Petition)
To: presidio9
Ham on rye, kiss your sister, as advertised.
8
posted on
02/02/2005 11:59:54 AM PST
by
groanup
(http://www.fairtax.org)
To: Ramcat
Some adjustables are tied to short term rates. But the housing market is not going to collapse even with high rates, only become realistic in certain markets. People who are currently buying $600,000 houses with interest-only or adjustables are speculating on price increases. That speculation, and the corresponding ridiculous prices in certain markets, will end with higher rates. And that is a good thing.
9
posted on
02/02/2005 12:01:15 PM PST
by
palmer
("Oh you heartless gloaters")
To: sr4402
Housing rates are more affected by the 10 year Treasury...which is down to around 4.15% or so.
That's still pretty low; you'll see common home mortgages at 10 Yr Treas + .5% (perhaps not the average rate, but still common)...so 4.65% should be doable right now.
...And home loans under 5% while our economy is growing (new home starts are at historical records) are good deals.
10
posted on
02/02/2005 12:02:29 PM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: sr4402
Bush needs to rain in the Fed bank if housing dips too much. Fannie Mae is ticking bomb. When she blows, there's nothing Bush will be able to do about the damage to the housing market.
11
posted on
02/02/2005 12:04:43 PM PST
by
AdamSelene235
(Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
To: Ramcat
No financial expert here, but from what I understand we're experiencing a rate hike in short term rates but steady to falling long term rates. This should insulate the housing industry at least for now? Given the GSEs make their money by borrowing short term and lending long, NO. Given that they've been borrowing Euros, Yen,Yuan etc. short term and lending dollars long term, Hell No.
12
posted on
02/02/2005 12:07:31 PM PST
by
AdamSelene235
(Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
To: adam_az; wardaddy
"Marx would be proud." No, Marx would be freaked out by a free Market that permits corporations to get interest-free money by issuing stock, by private home-ownership, and by a mortgage industry that gets and loans more money to and from private homeowners than from the government.
Keep in mind that just because *banks* may follow the Fed's lead on interest rates, that the private Market still sets interest rates on Treasury bonds, treasury bills, and home mortgages (among other things).
In fact, Marx claimed that *every* capitalistic society would dive so far and so fast economically that their populations would become impoverished and the people would rise up in armed rebellion.
Marx hasn't been right yet. Compare the U.S. and Japan to Cuba and North Korea after Marxism.
13
posted on
02/02/2005 12:08:02 PM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Southack
Everyone seems to be looking for the dark lining in the silver cloud, but IMHO there ain't none. We have an economy so solid that the Fed can raise the discount rate and the markets react by going up.
To: AdamSelene235
"Given the GSEs make their money by borrowing short term and lending long, NO. Given that they've been borrowing Euros, Yen,Yuan etc. short term and lending dollars long term, Hell No." That's backwards. Declines in the Dollar (as implied above) drive *up* home prices.
15
posted on
02/02/2005 12:09:34 PM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: presidio9
They serve their masters well!
16
posted on
02/02/2005 12:09:55 PM PST
by
hardhead
("Curly, if you say it's a fine morning, I'll shoot you!" - John Wayne, McLintock 1963)
To: expat_panama
"Everyone seems to be looking for the dark lining in the silver cloud, but IMHO there ain't none. We have an economy so solid that the Fed can raise the discount rate and the markets react by going up." Precisely.
17
posted on
02/02/2005 12:10:25 PM PST
by
Southack
(Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
To: Southack
That's backwards. Declines in the Dollar (as implied above) drive *up* home prices. No, expansion of credit plus false incentives for home indebtedness (not ownership) inflates home prices. This ultimately leads to dollar declines, but as I have said many times, inflation is neither instantaneous or homogeneous.
(here we go again)
18
posted on
02/02/2005 12:12:46 PM PST
by
AdamSelene235
(Truth has become so rare and precious she is always attended to by a bodyguard of lies.)
To: expat_panama; Southack; Grampa Dave; Dog Gone; BOBTHENAILER
"Everyone seems to be looking for the dark lining in the silver cloud, but IMHO there ain't none. We have an economy so solid that the Fed can raise the discount rate and the markets react by going up."Oh!!! I love it when ya talk dirty like that!!!
19
posted on
02/02/2005 12:15:17 PM PST
by
SierraWasp
(al-Najr, 38, after casting a ballot for the first time in his life. "I get to say I'm human now.")
To: presidio9
20
posted on
02/02/2005 12:16:37 PM PST
by
sully777
(It's like my momma always said, "Two wrongs don't make a right but two Wrights make an airplane.")
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