Posted on 03/18/2009 5:28:24 PM PDT by advance_copy
I think Obama's plan (the tax part of it already stated), is to inflate to the point that home values are back where they were (though a gallon of milk will be $5), and then raise taxes to soak up and redistribute money, thus cooling down the economy.
Is that picture from Argentina or Italy?
They want banks to lend but they have no clue that no one wants to borrow.
Take your trillions and use it to fund massive tax relief. Then you’ll see results.
It doesn’t matter how low the interest rates on mortgages go. Very few people can get mortgages because very few homes meet LTV ratios.
P.S. I meant mortgages for refinancing.
There is merit to supplying money for “reflation” -—if the people doing it know what they’re doing (and these clowns do not). However, home prices going back to the 2005 peak? Not going to happen.
another $1.2 trillion?
so what is the total up to since jan 20th? $7 trillion? 8?
anyone have the full list?
Since this spending orgy and these bailouts started last fall, I’ve been wondering this: Have the money managers for the overwhelmingly wealthy members of Congress been hedging the pols’ $$$$ against the damage that Congress and POTUS are doing to our currency?
We in the middle class, who don’t have the funds to hire professionals, will get clobbered as a result of their unimaginably irresponsible overspending.
Not true, I am 65 years old and don’t remember ever seeing interest rates below 6 percent until recently.
just want to know....looking for a positive....
Short answer..., probably yes. However, the bad news is that the rise in the market value of your assets WILL NOT keep up with the rate of inflation and you will lose true net worth daily (along with your purchasing power).
Inflation is inevitable under our current monetary system where currency is created from thin air and merely backed by the "full faith and credit" of the issuing governmental body. It is just a matter of the rate of inflation at any given time.
Since the creation of the Federal Reserve nearly 100 years ago, a dollar's purchasing power at that time is worth less than 5 cents today (and that is by using "Official Inflation" data which has been politically manipulated for decades now!)
A website calculating such data may be found at:
http://www.westegg.com/inflation/
I swear I remember mortgages in Arkansas at the 4% level int he 60’d.
fightenJAG-Yhe low interest rates will spur NEW HOME sales. The LTV is okay on new construction. It lowers the heck of the value of existing homes in the area but it keeps people working. If I remember correctly, there are something like 27 businesses tied directly to the building of each house.
Refinancing will not be affected in most parts of the country because of LTV. Sadly new homes purchased a year or two ago have gone down in value and can’t be refinanced without bringing money to the table.
I can’t vouch for the very early 60s but i bought my first home in 1967 after returning from Viet Nam. I bought it with a California Veteran’s loan and the interest rate was only 3 3/4 percent which was much lower than the going rate at that time. I believe the going rate at that time for FHA and regular VA loans was high 5s or low 6s. The reason the rate was so low was that i was one of the very 1st vietnam vets to apply under the CALVET loan program and they had not adjusted the interest rates since shortly after the Korean war. The CALVET program was great. The state loaned the full amount directly to me and my total out-of-pocket, move-in cost was less than $100. It was a 20 year loan and at 3 3/4 % about half of my very first payment went to equity.
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