Posted on 04/02/2024 1:16:43 PM PDT by Kaiser8408a
We’ve got a bad case of bad economic policies.
Who didn’t see the coming.
There are no good choices. So anything is possible, and everything will be bad.
It seems to me that the only way the massive national debt can ever be “handled” is to inflate it away. So I bet rates drop unexpectedly. Inflation will come back (as they desire) but rates will be low and that might appear to make the economy improve.
Personally, I would prefer a massive default, but I don’t expect that. I do expect massive inflation.
They recently dropped it to 4.5%.
You're suggesting that CD rates will go up again?
Mortgage rates during the Carter admin were between 14 - 18%
I remember. It took Reagan/Volcker to get rates down. Now Biden is doing a Carter.
Yep.
The Fed is not printing money, quite the contrary. Since April 2023, they have removed about $1.1 trillion from the money supply, and will continue to tighten at a rate of $75 billion a month.
This is why interest rates are going up!
The tight money is a symptom of the disease rather than its cause. The real culprit — the Democrats’ tax and regulatory policies and their war on merit. Need proof? Study the Reagon years.
Eh, I bought a mortgage in the 90s over 8%, and still managed to almost double my leveraged and tax-advantaged investment in less than 10 years.
The overall bubble economy and disappearing dollar are great risks, but the blip in mortgage rates isn’t the cause of that.
“A few months ago Chase Bank was offering 2 month CDs at 5% interest.
They recently dropped it to 4.5%.”
************
They want to make more money on depositors’ money. Why buy one of their CD’s when you can easily get a full percentage point higher yield on a Treasury MM fund?
Today I saw 3mon CDs at 5.4%, 1yr at 5.35%, 2yr at 5.2%
I think Chase offers lower rates because they have so many bricks & mortar branches
Fed will not cut. Chance that Fed will (must) increase a bit - sooner would be better.
Because: Math has U.S. gov’t “securities” interest payments as “not possible” by end of year.
Democrats and RINO’s to increase taxes, but fail to CUT GOVERNMENT PORK-for-VOTES AND WASTE.
IMHO
I think they will cut at least once and that it will be in June because of the political pressure from the White House.
Gold is a problem: If must sell, then buyers’ market - and in tough times, selling price sinks a lot.
Isn’t the “printed money” actually loans that (obviously) have to be paid back? Where does that fit into the big picture?
Saw that
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