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Replies (6)
- Louis Wolfson, "Louis Wolfson"
- Contributions:173
Unfortunatley he is right. You need the low rates to keep real estate afloat at all. More realistic rates of 6, 7 or 8% would criple the housing market even further cutting values in half form where they presently are.
We still have yet to see the effect of the over development of retail properties, How many malls do we need, how many home depot, CVS accross the street from Walgrens etc etc
Also the office market is going to be effected. more and more people telecommute.....
We still have yet to see the effect of the over development of retail properties, How many malls do we need, how many home depot, CVS accross the street from Walgrens etc etc
Also the office market is going to be effected. more and more people telecommute.....
Well, rates have actually dropped since the FED quit buying long term debt.
There is a risk that other countries become afraid of future currency issues, and that this backfires. [ a countries central bank monetizing its own debt by buying it can lead to a currency collapse ]
There is a risk that other countries become afraid of future currency issues, and that this backfires. [ a countries central bank monetizing its own debt by buying it can lead to a currency collapse ]
- Dan, "the_country_hick"
- Contributions:4694
Having one part of the government issue debt while another part of the government buys that debt is insane. It only devalues the currency.
I figure that investors will figure out this is a losing scenario and stop buying bonds. It may happen sooner, perhaps later. In the meantime I have slowly sold off all of my bonds so when the government refuses to pay them I still have my money. THAT is the downside to this. Current bond holders selling it back and not having more bond buyers to purchase new bonds. It could happen. When it does interest rates will skyrocket.
I figure that investors will figure out this is a losing scenario and stop buying bonds. It may happen sooner, perhaps later. In the meantime I have slowly sold off all of my bonds so when the government refuses to pay them I still have my money. THAT is the downside to this. Current bond holders selling it back and not having more bond buyers to purchase new bonds. It could happen. When it does interest rates will skyrocket.
- John Cantero, "MarketingSpecialist"
- Contributions:189
I believe this will create further complaicency in the market and that when they start to raise rates people will feel the urgency to buy. Just my opinion.
- Louis Wolfson, "Louis Wolfson"
- Contributions:173
John,
Its a two edge sword, I believe few are on the sidelines concerned about rates. I believe people are concerned about jobs, the economy, credit card debit, school loans and medical costs.
REMEMBER THIS: AS RATES GO UP PRICES COME DOWN. A DOLLAR IS A DOLLAR (or it use to be)
Dan,
Want to solve the debt issue with me? 10% Flat tax to all, including corporations. People hate taxes because they feel there unjust.
Import Tarifs, will help keep jobs here.
And stop wasting money on a drug war they cant stop. (even Mexico is considering it) Tax the hell out of it and control it. They loves control, vice and taxes....Gambling, Cigarettes, Alcohol, Lottery
Its a two edge sword, I believe few are on the sidelines concerned about rates. I believe people are concerned about jobs, the economy, credit card debit, school loans and medical costs.
REMEMBER THIS: AS RATES GO UP PRICES COME DOWN. A DOLLAR IS A DOLLAR (or it use to be)
Dan,
Want to solve the debt issue with me? 10% Flat tax to all, including corporations. People hate taxes because they feel there unjust.
Import Tarifs, will help keep jobs here.
And stop wasting money on a drug war they cant stop. (even Mexico is considering it) Tax the hell out of it and control it. They loves control, vice and taxes....Gambling, Cigarettes, Alcohol, Lottery
- Clay Branch, "Georgia Loans"
- Contributions:7835
No one is going to buy a home because a 30 Yr rate went from 3.875% to 3.625%. They will make a decision on Nov 3, after the 3rd Qtr GDP figure comes out and after the elections. It is estimated that an initial purchase of $400 Billion in 10 Yr notes will drop the yield about 12 bps.... If the GDP figure is less than 1 we will see a 12 bps drop or more without spending a dime. On the reverse of that, if they spent $400 Billion to lower yields and the GDP figure came out at 2.50-3.00, then that 12 bps drop would be wiped out and and yields would rise about 25 points, money wasted. If they go the route of buying 10 yr notes, who says MBS will be in lockstep? There is plenty of money and liquidity now, putting another trillion on their balance sheet will not have an influence on business investment, jobs, or some mad rush to buy or refinance homes.
Fed Chair: Government May Buy More Debt
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- 5.0/5.0
- (26 reviews)
Contributions:112"I do think the additional purchases, although we don't have the precise numbers for how big the effects are, I do think they have the ability to ease financial conditions," Bernanke said at a meeting with college students after his presentation at the Rhode Island Public Expenditure Council.
Bernanke also defended the TARP program, saying that the downturn would have been much worse without it.
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