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Started By
Message
re: Powell: Fed can maintain higher rates for "as long as needed"
Posted on 4/17/24 at 6:23 am to fr33manator
Posted on 4/17/24 at 6:23 am to fr33manator
quote:
drinking a gallon of beer a day"
sign me up
0
Posted on 4/17/24 at 7:35 am to fr33manator
quote:No I wish I could hang losers like you for being a loser.
You wish we were building castles for Norman lords and drinking a gallon of beer a day while performing manual labor?
Posted on 4/17/24 at 7:40 am to Free888
quote:
If it hits 10%-12%, I’m putting every cent I have in 30 year treasuries.
Good time to lock in on a fixed annuity as well...
Posted on 4/17/24 at 7:51 am to stout
This shite is so ridiculous. This is calculated to crash the economy so people with money can buy up everything...
And that means the home you are currently living in.
And that means the home you are currently living in.
Posted on 4/17/24 at 7:53 am to notiger1997
quote:
That was probably a Politard.
Nope. Most of the folks on Poli understand the inevitable inflationary results of over-liquidity and the risks of ongoing debt-creation without ever paying debt down. Whether that's based on the party of a given President or not can vary from poster to poster though.
Posted on 4/17/24 at 8:02 am to stout
quote:
Yes I was told the same from some here when I made a thread about Realtor's new favorite saying "Marry the house, date the rate"
That’s a good one, I’m going to use it ??. And as a realtor I agree rates need to go up. Honestly rate hikes have been good for market here in Middle TN as it’s softened a little and acting more traditional vs the Covid years where sellers/builders just bent buyers over a barrel on every transaction.
Posted on 4/17/24 at 8:08 am to Powerman
quote:
Could be a decade before we ever see sub 4% mortgage rates again for all we know
Will houses be more or less expensive a decade from now?
Posted on 4/17/24 at 8:47 am to ninthward
quote:
No I wish I could hang losers like you for being a loser.
Pretty sure the punishment for that is a fortnight in the stocks and a tongue lashing from a buxom wrench
ETA: Wench
This post was edited on 4/17/24 at 9:09 am
Posted on 4/17/24 at 8:47 am to Wishnitwas1998
quote:
The truth is historically that's not that high of a rate relatively speaking and after going 20 years with near 0% rates it's going to take something significant to reverse course
Its not that high when you could buy a nice house for $80k
Basically every expense has outpaced earnings. A decent house in many areas is $200-$300k, sometimes more than that. Even a 7.5% mortgage on that is prohibitive to the average earner.
Posted on 4/17/24 at 8:47 am to Dawgfanman
The interest rate should not be regulated by the FED but should be based on supply and demand of money available to lend.
Posted on 4/17/24 at 8:50 am to fallguy_1978
quote:
They are going to break something. They usually do.
Honestly can't believe they haven't blown something up already.
Posted on 4/17/24 at 9:10 am to StringedInstruments
quote:
Would that be so bad? Good beer. Good workout. Good sunshine. Sounds like what men prefer to do on the weekends nowadays.
You'll eat the eels
You'll live in the hut,
You'll drink the ale,
You'll own nothing
And you'll like it
Posted on 4/17/24 at 9:11 am to Loubacca
quote:
The interest rate should not be regulated by the FED but should be based on supply and demand of money available to lend.
There’s only one interest rate that isn’t
Posted on 4/17/24 at 9:20 am to GeauxOn
quote:
The scale i.e. interest rates needs to tip one way or the other, increase rates high enough to actually drives change in discretionary spending or reduce rates to lower the debt burden on manufacturers, reducing the price of goods (which likely wont happen).
I think this is a pretty interesting point. Could the Fed have landed in a no man’s land sweet spot where rates are high enough to contribute to inflation by raising borrowing costs, but not high enough to really suppress consumption.
Posted on 4/17/24 at 10:45 am to ned nederlander
quote:
Could the Fed have landed in a no man’s land sweet spot where rates are high enough to contribute to inflation by raising borrowing costs, but not high enough to really suppress consumption.
That's exactly what happened in the late 70s and what is referred to as "stagflation".
Enter Paul Volcker who proceeded to raise rates through the roof, causing a recession - much to the consternation of Ronald Reagan.
No president wants the fed to raise their lending rate on his watch, even if it's better overall for the economy.
Posted on 4/17/24 at 11:14 am to stout
If government would stop spending trillions more than we take in it would have a more significant impact than interest rates.
They are treating the symptoms not the disease.
They are treating the symptoms not the disease.
Posted on 4/17/24 at 11:23 am to VolSquatch
quote:
Its not that high when you could buy a nice house for $80k Basically every expense has outpaced earnings. A decent house in many areas is $200-$300k, sometimes more than that. Even a 7.5% mortgage on that is prohibitive to the average earner.
But higher rates are how you in theory get housing back to a more affordable level. The rates lower demand which then lowers prices
Notice I said "in theory". As others have mentioned there's a lot of things going on in this economy that have tested that theory. I do argue though if you raised rates high enough inflation would stop, the question becomes how high would you have to go and how much other damage would you do to the economy in the process?
Posted on 4/17/24 at 11:25 am to WildTchoupitoulas
quote:
Enter Paul Volcker who proceeded to raise rates through the roof, causing a recession
It's like taking medicine with side effects
It's likely going to take some level of recession to get us out of this. My suspicion is as you mentioned politicians can't stomach that so they likely keep trying to kick the can down the road as they are now prolonging and perhaps worsening the damage. The might allow a mild recession but that's about it
This post was edited on 4/17/24 at 11:26 am
Posted on 4/17/24 at 11:36 am to ManWithNoNsme
quote:
They’ve been fricking savers since 2007. Interest should be minimum 9%. But Fed has been sucking Wall Street dick for 17 years.
If you were saving in your 401K you got a nice blowjob.
Posted on 4/17/24 at 11:40 am to latxwoman
quote:
This shite is so ridiculous. This is calculated to crash the economy so people with money can buy up everything...
And that means the home you are currently living in.
If you currently have zero debt and have a sizable cash load this is a situation where you're mouth is quite literally watering because you know exactly what you are about to do.
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