Interest Rates to Rise in the US

The Money Times ^ | 11 April 21010 | Jaspreet Virk

[Repeat Offender]

Americans have for long enjoyed the low interest rates. Now with the nation’s economy back on the road to recovery, consumers will be facing a financial burden of rising interest rates.

According to economists, interest rates will rise to surmount the ever increasing debt and prevent inflationary trends in the nation.

"Americans have assumed the roller coaster goes one way," said Bill Gross of investment firm Pimco. "It's been a great thrill as rates descended, but now we face an extended climb."

[spectre]

I suspect many new potential home owners are afraid of buying a house for fear of losing their jobs. It doesn't matter what the interest rate is.

For example, the loan on a new Auto can be ZERO and people are afraid to buy because of the potential for a pink slip these days.

There really isn't the job security out there to make anyone feel comfortable taking on a major purchase. JMHO.

[Tarpon]

It’s getting hard to stick to the truth with so many in the lame stream media are telling lies.

Greenspan also, finally, admitted to what was the cause ... government forcing business to give out loans to people who couldn’t repay.

The economy is bad sick and Obozo is making it sicker. I just Friday drove through a black area, our daughter goes to classes there, and the numbers of black so something young people sitting by the roadside was startling. This is what liberals call compassion. It’s like looking at third world countries when you see people hanging oiut windows, standing in doorways, with that give up forlorn emptiness on their faces.

[Riodacat]

"It's been a great thrill as rates descended......."

Yes, it's been a big fukin thrill (to paraphrase Joe Biden).

[Painesright]

There are supposedly $10 - $15 Billion PER MONTH in Prime ARMS that are going to hit their adjustment period in 2011.

Will definitely be interesting to see how it plays out...

A quote from the article titled, “Credit Suisse: $1 trillion worth of ARMs still face resets”

“McBride is worried about the prime ARMs posted in the Credit Suisse chart. The chart shows $10 billion to $15 billion resetting each month. If a substantial number of those borrowers do not refinance and interest rates shoot up, McBride said he could see $50 billion worth of prime ARMs facing payment shocks each month by 2011.”

http://www.snl.com/interactivex/article.aspx?CDID=A-10770380-12086

[Oatka]

They can’t raise rates cause of all the ARM’s coming up. The market will do it for them. The Ponzi is busted.

The holders of ARMs must feel like they are on a beach, mesmerized by the oncoming tsunami:

[Nuc1]

Good post blam. Denninger has shown that defaulted mortgages are being carried as negotiated good in some cases for years with no payments being made. With the federal debt and the bank issues I suspect we will refuse to pay SS and Medicare at some point. It is the least damaging of the options. Of course it could just collapse but I believe the blind dollar cost averaging investors in the stock market by 401K investors will continue no matter what.

[screaminsunshine]

So they have to keep low rates til 2012 somehow. Good luck.

[packrat35]

My house was paid off Aug, 2008 and mailed the last payment on the car yesterday. Have one more year on the SUV and then all will be paid. I am not buying even at 0%, which is what I paid on the car, by the way.

I had intended to trade in the car for another SUV last year. The wife and I decided that we didn’t want any debt. Her job is just hanging on and I never know what will happen at mine. Both of us have been at same jobs for past 13 years.

We were really looking to get another SUV, (we both have Saturns) but even at firesale prices at Saturn when it was shutting down, just could not justify any risk by borrowing.

I am currently doing side work at least 2 weekends a month, which means I go 21 days without a day off every month, but I keep my hand in, just in case either of us lose our job, I won’t be starting up from scratch.

We don’t have much savings yet but are working on it and I am keeping some cash in the house now as a fallback. ANYONE who is still adding any debt at this time, is an utter fool. I just don’t have any pity on you at all. You got to be a obamamaniac or brain simple to even consider it.

Then I get to read where once again UNEXPECTEDLY or SUPRISINGLY that consumer debt is still falling. What kind of kool-aid do you got to be drinking to even expect it to go up?

[Montfort]

If Fitch were to substantially lower the US Gov’t’s bond rating, I wonder if Congress would issue subpoenas.