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0.25 points is a JOKE, if they raise another 0.25 points in December that would be the end of it.
Wait, you said if rates tick up... now suddenly you're backtracking on your chronic hyperbole and adding open-ended qualifiers like "meaningfully" to your previous statements. As with most doomsday types you're constantly trying to make predictions that are impossible to nail down. Some day this will happen when that happens in a meaningful way.
Quote:
Originally Posted by C2BP
You are one of those people Lieqiang who say: "We don't have to have the darkness. We can only have the light."
Never said that, but sure is cute to see you attack that strawman. Get 'em tiger!
Wait, you said if rates tick up... now suddenly you're backtracking on your chronic hyperbole and adding open-ended qualifiers like "meaningfully" to your previous statements. As with most doomsday types you're constantly trying to make predictions that are impossible to nail down. Some day this will happen when that happens in a meaningful way.
Never said that, but sure is cute to see you attack that strawman. Get 'em tiger!
You can't be serious about 0.25 increase, that means nothing. 0 or 0.25 or 0.5 means nothing, rates should go much higher. When you talk about rate increase for 2 years and all you got is a lousy 0.25 until today then there is something seriously wrong with this picture.
Anyone who is one sided, one eye blind like you are, who thinks our economy should only grow and never contract, who thinks prices should only go up, stocks should only go up, interest rates should only go in one direction - down, is saying that we should never experience a darkness and only the light.
Higher rates will put more financial strain on banks meaning fewer loans out there for investors to buy cheap property. Property prices will go down, apartment developers can then buy cheap land and build more apartments. See how that works?
Also higher rates will bring down our stock market bubble, lowering the assets of the rich who are using their stock market dividends to buy properties.
You have to realize that this is all relative. And also has to be in context with any economy, general and local.
If the interest rates on loans are very high, fewer people and businesses will borrow. Banks don't or can't push much in the way of loans. They don't 'put loans out there'. The demand has to be there, and those in demand have to be all that more financially capable. So high rates means more risk in borrowing and fewer able to afford loans.
If I am going to invest in an apartment, the total asking price is less a concern than the monthly payment on the loan. The asking price will be extremely locale dependent, but not so much the rate.
Very few people bought homes as I did in 1980 at 14%. High rates discourage home ownership and business expansion, so relative contraction of any economy is going to happen. And that is what happened in the early '80's.
If stocks are less attractive as an investment, more people with the means will move toward RE, tending to increase prices there.
Very few people bought homes as I did in 1980 at 14%. High rates discourage home ownership and business expansion, so relative contraction of any economy is going to happen. And that is what happened in the early '80's.
I contracted for a custom home and put down a sizable deposit about '79 but construction was delayed and I really could not bring myself to walk away so I (and the builder) paid points to finance at 13.5% in '81. I was able to refinance later and the rate was still 6% when I sold in '95.
You are not be taken seriously, and your posts are just for entertainment purposes. Unbelivable what you can read here.
You may take my posts in whatever way you wish. There is still no such thing as a business cycle, and so far as anyone can tell, there never has been. It's nothing but a dose of mystic whoopee -- a sort of bright, shiny object if you will.
You may take my posts in whatever way you wish. There is still no such thing as a business cycle, and so far as anyone can tell, there never has been. It's nothing but a dose of mystic whoopee -- a sort of bright, shiny object if you will.
Only someone who has no knowledge about economics can denny existance of a business cycle. You think that Fed Chairman doesn't know about the business cycle, you think Greenspan, Bernanke and Yellen now don't know about the business cycle, you think that any reputable CEO of any company doesn't know about the business cycle?????
Only someone who has no understanding about the economy whatsoever can be denying existence of a business cycle.
You just lost all credibility my friend and I can't take your posts seriously anymore.
Only someone who has no knowledge about economics can denny existance of a business cycle. You think that Fed Chairman doesn't know about the business cycle, you think Greenspan, Bernanke and Yellen now don't know about the business cycle, you think that any reputable CEO of any company doesn't know about the business cycle?????
Only someone who has no understanding about the economy whatsoever can be denying existence of a business cycle.
You just lost all credibility my friend and I can't take your posts seriously anymore.
You two are at opposite ends of economic thought, so it's unlikely that you will be meeting in the middle.
I never close my mind like this, in fact a reason I am here. To hear opposing views. I am not one to attend to palsy-walsy back slapping and circle jerks.
A business cycle, if one was to use the term, is a very general after the fact result of ongoing economic activity. Ups and downs of millions of transactions and economic details that happen daily, weekly and so on. But to say that tomorrow X will happen in our current 'cycle' is always a guess, because these fluctuations are never the same. One persons, or market, or investment or business's 'cycle' may not correlate with a more general cycle or with any or another business. It is not like night and day where there is a set cycle for any or everyone. So any 'business cycle' has no set terms. No further than whatever goes up might come down. Or not...
You two are at opposite ends of economic thought, so it's unlikely that you will be meeting in the middle.
I never close my mind like this, in fact a reason I am here. To hear opposing views. I am not one to attend to palsy-walsy back slapping and circle jerks.
A business cycle, if one was to use the term, is a very general after the fact result of ongoing economic activity. Ups and downs of millions of transactions and economic details that happen daily, weekly and so on. But to say that tomorrow X will happen in our current 'cycle' is always a guess, because these fluctuations are never the same. One persons, or market, or investment or business's 'cycle' may not correlate with a more general cycle or with any or another business. It is not like night and day where there is a set cycle for any or everyone. So any 'business cycle' has no set terms. No further than whatever goes up might come down. Or not...
I just posted a video for him yesterday where a Congresman was asking Janet Yellen about the business cycle. Even that Congresman knows about the business cycle. If there is no such a thing as a business cycle don't you think Janet Yellen would replay to him " hey what do you mean by the business cycle" "There is no such a thing as a business cycle". No, Yellen tried to answer his question understanding very well what that Congressman was asking her.
Anyone who is denying existance of a " Business Cycle" should be disqualified to talk about economics. That is like BASIC 101.
I just posted a video for him yesterday where a Congresman was asking Janet Yellen about the business cycle. Even that Congresman knows about the business cycle. If there is no such a thing as a business cycle don't you think Janet Yellen would replay to him " hey what do you mean by the business cycle" "There is no such a thing as a business cycle". No, Yellen tried to answer his question understanding very well what that Congressman was asking her.
Anyone who is denying existance of a " Business Cycle" should be disqualified to talk about economics. That is like BASIC 101.
Sure 101.
In retrospect one can discuss 'til the cows come home. But there is little to see that looks cyclic, and it tells you nothing about what to expect tomorrow morning.
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I contracted for a custom home and put down a sizable deposit about '79 but construction was delayed and I really could not bring myself to walk away so I (and the builder) paid points to finance at 13.5% in '81. I was able to refinance later and the rate was still 6% when I sold in '95.
