Posted on 12/17/2018 10:37:46 AM PST by Moonman62
Yes, and bidfda.com. I respect you constructive criticism. No big deal, I’m currently at the bengals game rt now
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Business and economic Cycles only happen naturally when they are not artificially injected or tanks or manipulated. Are you going to tell me that under all of the crony capitalism with the leftists that includes Liberal Republicans that we are under normal conditions and we should have applied normal curves and charts and graphs. No sir. Bilderberg and other people like that that round table that Obama had those people do manipulate the market. If Milton Friedman were alive now and he saw this market and knew everything that we knew here and somebody asked him what I should do I believe he would say I haven’t a clue. To think that the current fed gives a rat’s butt about our current debt and this is somehow helping to finance that debt is totally naive. I sat in on the Midwest fed out of Cleveland at a lecture by one of the PHD Economist a couple years ago the stuff he was putting up on his slides was pure fiction pure fiction out of Obama’s butt. These people are $200,000 a year or more PhD economist who have castles built on sand.
I would NOT support 7%, not even 5%, not even 4% FED funds rate based on current inflation. 3% sounds about right at this juncture considering everything.
In my opinion, for the economy to stay healthy and strong, it needs capital formation. With zero rate policy (ZIRP) the money goes to buy hard assets instead of investing in productive main street economy.
Market is still overvalued based on real inflation rate and historical data going back nearly 100 years. Gravity is the real cause for the correction, everything is just excuses to act on it.
http://www.multpl.com/shiller-pe/
There really isn’t a solution that does not have pain. The bad news is that you can’t kick the can down the road forever. The good news is that you can kick the can down the road a long, long, long time.
“If they cause another recession with their elite manipulation of the markets they’ll cost us trillions more and possibly Trump’s reelection. “
And THAT is that goal.
This is absolutely deliberate. We are going to have to put the financial industry on the list as well.
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Yours is the smartest, least ostrich in the sand post here...I’m tired of folks ignoring the unemployment, low inflation, huge job growth, and huge tax hauls when they say we are over valued or China issues or it’s just the debt.
The idiots here haven’t noticed this started just before the election and seems to have the Mockingbird media saying the same thing...recession...
Would Thomas Friedman and Benjamin Graham say we are just in a cycle and over valued sell off???
H no!
This is Steyer, the Fed, Soros, hedge fund managers and toss in a few Rothschilds to boot.
Thanks for your response entrophy12.
That’s not too bad an increase.
I’m not totally against a rise in the rate. Right now the market is falling like a rock.
The rate isn’t helping.
We have got to do some belt tightening, and I think welfare has got to be addressed.
We’re spending over half a trillion dollars a year on it.
In the 90s they moved the deck chairs, but I think that was about it.
It’s bloated beyond sanity.
Fed is crazy. The rest of the world is not raising rates, or not as fast, so the Fed rate increasing are the chief reason the dollar is rising. I guess it does serve to moderate any price inflation coming from overseas.
Well I have selfish reasons to oppose these hikes. Here in Canada my mortgage is coming in for renewal. Canada has no choice but to follow US interest rate hikes, unless we want to see our dollar cave. So SOB, this is going to cost us more each month on our renewal. Yes, it would be better if we had no debt, and in a perfect world we wouldn’t, but raising 4 kids it just is not going to happen.
FWIW, I could really care less if our dollar caves, but others apparently do care. I suppose I would care if I were going to go for a trip to the US in the near future.
https://www.bls.gov/cpi/questions-and-answers.htm#Question_2
” Here in Canada my mortgage is coming in for renewal—”
What does that mean? I’ve had 30 year mortgages,but they were fixed.
(Obviously I am no financial genius.)
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The industry here is completely different. Found that out with my wife, who emigrated here from the US. No such as thing as an interest rate term that can be locked in for 30 years. I think the longest term you can get is 10 years, but those are very expensive so most consumers get 5 year terms. Essentially my rate is locked in for 5 years only and then we have to re-negotiate.
So the amortization period is as you said, for 30 years, but the promise from the bank to honor the interest rate only lasts 5 years.
What is not different is how interest rates are influenced. The Central Bank sets the bank rate, and then bond markets adjust themselves based on that, and the mortgage market then takes its cues from the bond market. Because Canada’s economy is so tied to the US, the Central Bank essentially matches whatever the Fed does.
My take is the CPI is highly manipulated to underscore real living man’s inflation. And has been manipulated since Johnson. The reason being it affects the net GDP numbers. Want to show high GDP then you need to get that CPI smaller. Vehicles and food are the worst examples of real inflation in my opinion. Bread products, corn products, and fresh produce prices are just nuts.
Several years ago when I still had a mortgage on my home , it was about 8-1/2 % as I recall. Well, I finally paid it off a little early when I started drawing S.S. because I knew I wouldn’t have enough to make payments then. Well, now interest is so low on my savings that I’m losing again. I got robbed twice. Actually, I got robbed 3 times counting the last few years that I worked.
I’ll be darned,thanks for that info.
I know when my kids were buying their homes I told them to avoid adjustable rate mortgages and get a fixed rate.
The ARMs get a lot of people in trouble here.
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Oh yes, you guys have some complex products. Isn’t their ARMS that jump like 2% after so many years - or are those schemes all finished now?
Sounds like another rate hike from the Fed may be coming?
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