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Powell hints that the Fed will raise interest rates 4 times in 2018
Yahoo Finance ^ | 02/27/2018 | Myles Udland

Posted on 02/27/2018 8:36:53 AM PST by SeekAndFind

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To: Sam Gamgee

Very easy to answer that. The previous FED chair, Janet Yellen was determined to keep Obama in power by keeping rates unrealistically and historically low -or- she was just scared out of her wits to raise rates for the fear of being accused of causing a recession.

The new FED chair seems to be more of a realist. The FED is notorious in creating unnecessary dislocations in the economy by being behind the curve.

The economy works best in the long run if left alone. Periodic mild recessions are good because it gets rid of unproductive assets and dead wood.


41 posted on 02/27/2018 3:32:05 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: CatOwner

You put most of your retirement money in bond index funds at these ridiculous and artificial interest rates? I am so sorry, you got very bad financial advice from someone.


42 posted on 02/27/2018 3:36:21 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: bert
Market is more over-valued than in Oct 1929 before the crash. It was already over-valued when Trump was elected. His deregulation and taxcuts are certainly good, but it was like adding petrol on a simmering pile of wood.

When the market ascends at far greater rate than gain in productivity, and goes parabolic, a vicious correction always will follow.


43 posted on 02/27/2018 3:43:31 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: SecAmndmt

We both get it, FRiend!


44 posted on 02/27/2018 3:44:37 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: TheBattman

I like Realistic interest rates and mortgage rates. Which currently should be 5-6% range. Both will move together. Ridiculously low interest rates cause bubbles in the assets market. Bubbles always burst creating horrible losses for asset holders.

Housing is already way over priced, and ahead of buyer’s income increases. Same thing happened 7 years ago. If you can’t sell your house, it is already over-priced. Sorry, that is the reality.


45 posted on 02/27/2018 4:32:17 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: TheBattman

I like Realistic interest rates and mortgage rates. Which currently should be 5-6% range. Both will move together. Ridiculously low interest rates cause bubbles in the assets market. Bubbles always burst creating horrible losses for asset holders.

Housing is already way over priced, and ahead of buyer’s income increases. Same thing happened 7 years ago. If you can’t sell your house, it is already over-priced. Sorry, that is the reality.


46 posted on 02/27/2018 4:32:18 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years is 60 times worse than DACA)
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To: xzins

We have had extremely low interest rates ever since Greenspan decided it was the proper response to 9-11. That’s about 7 years longer than just Obama.


47 posted on 02/27/2018 9:44:09 PM PST by Pelham (California, a subsidiary of Mexico, Inc.)
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To: Moonman62

Yep, late 2019 or early 2020 is the planned target for the next recession. Take Trump out by any means necessary.


48 posted on 02/28/2018 8:05:29 AM PST by damper99
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To: xzins

We are TRYING to sell the house and have come off to what every estimate and appraisal says it is worth. The town the house is in truly has a very dead market. Also found out our real estate agent really made no effort to market the house.

Now we are in a position to have to do more maintenance to it (sink more $$ in to it) just to unload it because it has been empty for nearly a year. Sigh.

We simply want to bail out of it - WE CANNOT continue to make two housing payments per month. It has killed our savings.


49 posted on 02/28/2018 9:56:50 AM PST by TheBattman (Voting for lesser evils still gets you evil...)
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To: blackdog

What “free money”? Show me a free money mortgage. Please...


50 posted on 02/28/2018 9:57:36 AM PST by TheBattman (Voting for lesser evils still gets you evil...)
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To: TheBattman

Put this property up for public auction if there are any competent real estate auctioneers operating in your area.


51 posted on 02/28/2018 10:01:21 AM PST by VietVet876
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To: TheBattman
Save your money and buy a house. America's addiction to mortgages is weird. I fell for that crap back in 1987 when a good rate was 11%. Never again.

When you buy on a mortgage you also have no negotiating authority to get a good price on the home.

4% money is a close to free as I can say I ever experienced. That is lower than a passbook savings account from the 70s.

52 posted on 02/28/2018 10:13:38 AM PST by blackdog
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To: blackdog

Great advice... when one is paying for an existing mortgage, AND paying a lease at our new location. Exactly what money am I suppose to save at this point? Sorry, but there is none.

As to your second claim regarding negotiating - that is blatantly false. Might a cash offer be somewhat more attractive to sellers, particularly those who are motivated by a schedule (such as our own position trying to get out from under a home where we no longer live) - certainly. But I’ve seen lots of successful negotiating that a mortgage (or lack thereof) made no difference.

My wife is a loan assistant/processor - so I’m pretty acquainted with how the system works.


53 posted on 02/28/2018 11:28:33 AM PST by TheBattman (Voting for lesser evils still gets you evil...)
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To: xzins
I’m POd that these guys covered for Obama by their low interest and spending policies propping up the market.

Increasing interest rates are a sign of a rapidly expanding economy. If the Fed didn't do it during Obama's term it's because growth was more anemic than it has been under Trump.

54 posted on 02/28/2018 11:31:30 AM PST by DoodleDawg
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To: TheBattman

When son in same situation he shortsold and rolled shortage into a new mortgage on 2d house. He was stuck, though. Agent can make all the difference, though. Best selling agency with their best salesperson. That’s normally a person who actually works. Too many don’t work at showing. Just wait for phone calls.


55 posted on 02/28/2018 12:37:12 PM PST by xzins (Retired US Army chaplain. Support our troops by praying for their victory.)
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To: DoodleDawg

I do think a low slow interest rate increase is good for savings and for the housing market. So I agree with you


56 posted on 02/28/2018 12:38:22 PM PST by xzins (Retired US Army chaplain. Support our troops by praying for their victory.)
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To: xzins
I do think a low slow interest rate increase is good for savings and for the housing market. So I agree with you.

Right now the Fed wants to keep the economy from overheating and triggering a rise in the rate of inflation. They'll let interest rates slowly rise until the reach the point where the economy is still growing but inflation remains under control.

57 posted on 02/28/2018 12:59:51 PM PST by DoodleDawg
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To: entropy12

Man after my own heart, pal. There are plenty Fed defenders here but I am not one of them, like you I see. I agree that we don’t need Central Banks meddling with the economy to either contain inflation or help employment. The free markets work best. Especially not when inflation is driven by good economics like it is now, NOT massive monetary pumping. Agree also the mild recessions (and asset corrections) are good things.

Good to hear we have a realist then in the Fed.


58 posted on 02/28/2018 1:46:13 PM PST by Sam Gamgee
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To: TheBattman

If I am interested in a property I first arrange and pay for a zealous home inspection. The inspector documents everything deficient. Then the seller is required to disclose those deficiencies to other potential buyers. No mortgage company will write a loan unless those things are remedied. So I knock the price down for the spread. $40k off most times. Mean I know. But it works.


59 posted on 02/28/2018 3:23:42 PM PST by blackdog
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