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Does a weak dollar create inflation or does inflation cause the dollar weakness?
Than tell me why the price of every thing is going up? Unless you think the government, media and economic advisors that work for the government and news media are lying to the people about inflation.
The US dollar is the strongest in the world. Most countries trade in the US dollar. The Euro and British Pound are second strongest.
Well, I'm no economic genius, but I will say this:
We inherited my FILs house when he passed in June. Spouse was too stunned by FIL s passing to immediately get on the "sell your real estate high" bandwagon, but did agree to look at few houses...to upgrade from our starter home, once we sold FILs house.
We looked at one nice house, but even before going and looking, we knew the asking price was too high, especially for what it was and this area.
We had a "fill in agent", who alerted us to this : she said "an all cash offer will be greatfully accepted at a lower offering price over a loan approval sale" if we offered cash, because, she continued, "local banks are refusing to lend the kind of asking money for the houses in this area. The asking prices are way too high for the value real estate here holds".
There may be plenty of borrowers WILLING to borrow full-tilt, but banks here have definitely slammed on the brakes.
So, if banks can't loan out the money, where else would you suggest they put their money to work for them?
Another caveat: businesses aren't borrowing as much, by sheer fact that many didn't survive the lockdown and therefore closed, so no need to borrow to keep it running. A closed (permanently) business doesn't need to borrow money.
Add the fact that one's surviving are now a bit more loan adverse because they don't want to be stuck with high debt payment s they may not be able to service if/when or with reduced sales during the pandemic if they did survive the lockdown.
Now other areas of the country may be different, and low loan rates may look attractive, but if the business isn't so sure they can make that money back.
As with everything, there will someday be a day of reckoning.... sooner than later.
Best
Your overvalued house is the issue, not the bank lending money.
You couldn’t have been more wrong ..are you kidding us with that statement.
You have been crying the sky is falling since you joined ….anyone who listened to Your predictions and reacted lost a lot of money and opportunity
Something is wrong, and pretty much everyone acknowledges this in their own way. You on the other hand keep living in denial, in your own imaginary world.
We can see the social and political disintegration before our very eyes, the anger, the REVOLUTION. We are constantly told to expect economic growth and therefore inflation, not purely because anyone truly wants consumer prices to rise more than what little they have, rather if that ever would happen then it would finally confirm the vastly more important growth part. This means real inflation, the money kind, and not some supply-driven bulge from other and unsustainable artificial factors.
Every year, Central Bankers and so called Economists tell us how a golden age is imminent, right around the corner. They steady themselves for the celebration, the parade which they anticipate will follow when all "EMERGENCY" programs are finally removed. Taper then terminate QE’s, hike rates, finally normalization across all global finance.
And every year it eventually becomes clear this isn’t going to happen. But why? No one ever says. They promise and guarantee, the media gets hysterical about it and then dead silence.
Where is this REAL ECONOMIC GROWTH??????? The real truth is that no real economic growth will ever be possible until we man up and go thru DEFLATION first.
DEFLATION before REFLATION. That is a LAW of NATURE and no monetary gimmicks or any FED manipulation will ever change that.
No one says things are great …but listening to your profit of doom would have left people following your prediction over the years a whole lot poorer for no reason if they really bought in to your constant bashing of things and missed calls
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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If the banks are not lending, why do I keep getting pre-approved offers 3-4 times a week for unsecured personal loans, mortgage refinancing, credit cards, and car loans? It seems like they wouldn't waste money on such frequent advertising if they didn't want to lend. Credit Karma shoes that I have 23 offers for personal loans at 9%.
Your overvalued house is the issue, not the bank lending money.
You missed the point.
ALL houses are high asking price s, banks are refusing to lend.
IF property values were stable, or are to stable for the future here, banks would be lending.
Thus area is not a major city with high value real estate, which is what sellers are trying to ask for.
Banks everywhere are cancelling CC accounts or reducing credit limits, so in that sector,banks are also not lending.
That is a separate issue, not tied to high overpriced homes.
Maybe reaganomics will come back open up the money supply and banks will be back to charging 20% interest on a mortgage, and we can all get 12% on our money market accounts.
ALL houses are high asking price s, banks are refusing to lend.
IF property values were stable, or are to stable for the future here, banks would be lending.
Thus area is not a major city with high value real estate, which is what sellers are trying to ask for.
Banks everywhere are cancelling CC accounts or reducing credit limits, so in that sector,banks are also not lending.
That is a separate issue, not tied to high overpriced homes.
Maybe reaganomics will come back open up the money supply and banks will be back to charging 20% interest on a mortgage, and we can all get 12% on our money market accounts.
Who knows.
Banks are not refusing to lend. It’s simply not true
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,585 posts, read 81,206,701 times
Reputation: 57821
Quote:
Originally Posted by Lowexpectations
Banks are not refusing to lend. It’s simply not true
If anything, they may be more careful about the qualifications of the borrowers to avoid another recession like 2008, I suppose, but I know many people that have refinanced to take advantage of the low interest rates or have bought in the last few months.
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