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Yellen is a corrupt idiot that shrugs away our skyrocketing housing and rental costs by saying the price of lettuce has gone down 30 cents. Rosengren is actually talking about issues that matter. I have no doubt that Yellen is a corrupt plant whose true motive is to keep rates low throughout Obama's presidency. She is running out of excuses and all society is staring at her.
I have no doubt that Yellen is a corrupt plant whose true motive is to keep rates low throughout Obama's presidency.
She's been working for the Fed Reserve since the 90s, that would be a hell of a preemptive plant. The US Senate would have to be in on it too since they confirmed her.
She's been working for the Fed Reserve since the 90s, that would be a hell of a preemptive plant. The US Senate would have to be in on it too since they confirmed her.
Obama nominates her. For what reason would the senate deny her? They don't know the motives her and Obama have planned.
Are the days of a 7% home loan gone forever? Seems like every country is racing towards the bottom in terms of fiscal policy with many central banks already negative. Raising rates would greatly reduce the ability for people for take home loans and reduce home values.
Furthermore, the idea that most individuals have the majority of their net worth tied to their home leads me to believe that this reduction in home values would be crippling to many.
Any thoughts?
Future interest rates are nearly impossible to predict. Unfortunately the average home owner in the U.S. have all of their wealth in equity as you stated above. Their loan to value will fall, and the lack of financial education will bring about panic. But it isnt like we've never had a recession before so i think we can manage. There has to be a way to solve these issues without a negative adverse effect...
Future interest rates are nearly impossible to predict. Unfortunately the average home owner in the U.S. have all of their wealth in equity as you stated above. Their loan to value will fall, and the lack of financial education will bring about panic. But it isnt like we've never had a recession before so i think we can manage. There has to be a way to solve these issues without a negative adverse effect...
Low rates, assumable loans will help cover current home owners. High rates, and IMO 7% is relatively high, will simply punish the housing sector and vast middle class wealth. 10% or higher very unlikely, but would be a killer. I do believe rates will stay relatively low for an extended period of time short/medium term, but slightly higher than today. Maybe up a few percent over the next few years. IMO not enough to alter the housing picture by much, and more of a reflection of a continued general low grade recovery without onerous inflation.
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