Posted on 04/11/2010 7:04:17 AM PDT by Repeat Offender
Americans have for long enjoyed the low interest rates. Now with the nation’s economy back on the road to recovery, consumers will be facing a financial burden of rising interest rates.
According to economists, interest rates will rise to surmount the ever increasing debt and prevent inflationary trends in the nation.
"Americans have assumed the roller coaster goes one way," said Bill Gross of investment firm Pimco. "It's been a great thrill as rates descended, but now we face an extended climb."
(Excerpt) Read more at themoneytimes.com ...
still waiting...
They can’t raise rates cause of all the ARM’s coming up. The market will do it for them. The Ponzi is busted.
LOL -- That's the funniest joke I have heard since the last Obama teleprompter séance. Translation, no one will buy our fiat paper anymore unless we jack up interest rates ... Hello inflation.
How long have they been saying this now?
What debt?
Obama just this morning sneaked out of the White House without the press to get more from his stash to pay for all the goodies he has bought for his cronies.
You beat me to it. I was going to say that The Money Times is now doing comedy in addition to financial news.
Oh, we’re on the road to recovery.... we’re just driving the wrong way.
Say bye bye to what was left of the real estate market.
Great, my first mortgage (FHA) was 12.25% payable as soon as I was able to reach slot #1 at the gas pumps, after hours in line, that went from showing .25/gallon to .85/gallon and soon after to $1.85/gal.
This “media meme” of “recovery” parallels almost perfectly comments in 1930 and 1931.
This is going to get very ugly.
And right about the time commercial real estate is expected to drop.
And luckily, news was released the other day that oil is on the climb.
“They can’t raise rates cause of all the ARM’s coming up. The market will do it for them. The Ponzi is busted.”
T h a t’ s w h y they haven’t raised rates yet. It seems like this should have happened 3 years ago. Now I see why.
Might as well call this the Jimmy Carter effect. Higher interest rates will also cause employers to not borrow to expand thereby not hiring or even laying off workers because of high interest expenses.
Idiots in Washington.
Isn’t the flip side to this, is that banks aren’t going to lend money with rates being so low too? I’m in construction and building is down by 40-50%.
It’s like we’re screwed no matter which way we chose to go.
Greenspan was just saying this in an interview....what a joke, eh?
Reminds me of the Realtors reaction when I bought a simple 2 bedroom starter at 12.25% instead of taking an ARM and buying a bigger home.
I stated: "I simply want to know what I will be paying each month">
His response was: "your crazy!"
I've never defaulted on anything ever, however.
Not to alarm, but we have been here before. To expand on my statement: Inevitable spiral has begun. Larger deficits drive up interest rates as government competes with individuals and businesses to borrow. Higher interest rates will cause employers to forgo expansion, therefore they will not hire or will even lay off workers because of high interest expenses. Higher unemployment, higher interest rates, inflation to follow...just as many economists had predicted.
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