What is?

[Jimi77 Premium Member]

Inflation is not a good economy.

I disagree. The Central Banks certainly disagree. Inflation fuels spending and growth. The Central Banks do not want low, no or negative inflation; they want inflation right in that sweet spot they've identified as easy to control and deceive the American public about how high inflation actually is.

 

[ThxOne Premium Member]

I disagree. The Central Banks certainly disagree. Inflation fuels spending and growth. The Central Banks do not want low, no or negative inflation; they want inflation right in that sweet spot they've identified as easy to control and deceive the American public about how high inflation actually is.

I wasn't aware that I work and earn money to make the central banks happy... I thought it was to sustain my existence, pay for the things I need to live at a reasonable cost. My bad.

 

[spokey9 5,000+ posts]

Have you been to a In-n-Out? You think this has something to do with their dresscode? And if it were germane to the job, ie a Hooters waitress, I'd agree.

Nope...but I do believe employers have a right to a standard for appearance...

Nobody is forced to work any job...

 

[Jimi77 Premium Member]

Nope...but I do believe employers have a right to a standard for appearance...

Nobody is forced to work any job...

I just hope some germaphobe or immune compromised person doesn't lose their job over this shyt. Not sure why they want to wander into politics?

 

[RobGMN Premium Member]

I just hope some germaphobe or immune compromised person doesn't lose their job over this shyt. Not sure why they want to wander into politics?

It’s good for business. Just ask that pillow clown.

 

[RobGMN Premium Member]

I disagree. The Central Banks certainly disagree. Inflation fuels spending and growth. The Central Banks do not want low, no or negative inflation; they want inflation right in that sweet spot they've identified as easy to control and deceive the American public about how high inflation actually is.

Thx knows more than the banks, more than any economist, more than any history book.
If he said it’s bad, it must be bad.

 

[RobGMN Premium Member]

That’s why you need to account for inflation to see what the real gains are. The economy always grows by the number but everything increases with it. That has to be accounted for to compare it to other points in time. This 8% mortgage rate right now is insane. So glad I made moves at 2.75-3%

The Catch-22 of low mortgage rates is spiking housing prices, plus they are a sign of a bad economy.

There were plenty of complaints on this board about how Biden cause housing prices to go up, when it was actually the poor economy that caused it. The economy that collapsed before Biden was elected.

 

[djdilliodon!]

The Catch-22 of low mortgage rates is spiking housing prices, plus they are a sign of a bad economy.

There were plenty of complaints on this board about how Biden cause housing prices to go up, when it was actually the poor economy that caused it. The economy that collapsed before Biden was elected.

I’d rather pay more for a house than higher interest. Do the math on over paying by $100,000 on a house that was normally $400k at 8% vs $500k at 2.75%. It’s the exact reason I bought another house to rent it. The difference in payment is nearly $1000 a month. The other sweet part is interest rates being low and you getting this 100k in equity allows you to take a line of credit which you can use to say buy another house with. Any person with some money can take advantage and use those benefits to make much more money, I know I did. Now I just give it time and hope it goes back so I can do it again

 

[ThxOne Premium Member]

The Catch-22 of low mortgage rates is spiking housing prices, plus they are a sign of a bad economy.

There were plenty of complaints on this board about how Biden cause housing prices to go up, when it was actually the poor economy that caused it. The economy that collapsed before Biden was elected.

Because of the pandemic when everything was shut down. Gonna spin it and blame Trump for it as per your handbook now?

 

[Jimi77 Premium Member]

That’s why you need to account for inflation to see what the real gains are. The economy always grows by the number but everything increases with it. That has to be accounted for to compare it to other points in time. This 8% mortgage rate right now is insane. So glad I made moves at 2.75-3%

7-8% aren't insane rates. It's the 2-3% rates that were insane.

 

[RobGMN Premium Member]

I’d rather pay more for a house than higher interest. Do the math on over paying by $100,000 on a house that was normally $400k at 8% vs $500k at 2.75%. It’s the exact reason I bought another house to rent it. The difference in payment is nearly $1000 a month. The other sweet part is interest rates being low and you getting this 100k in equity allows you to take a line of credit which you can use to say buy another house with. Any person with some money can take advantage and use those benefits to make much more money, I know I did. Now I just give it time and hope it goes back so I can do it again

No argument. But you also have to factor in the higher taxes when the value of the house goes up by 20%, then potentially being top-heavy when the market tilts the other way.
And again to mention the fact that sweet mortgage rates are a bad indicator of the economy in general (even though they can be great for someone in a position to capitalize on them).

You seem to know finances, at least for real estate. I'd assume your finance knowledge goes further, but some here may see your post and think the low mortgage is great overall. This explains it a little more for them. Even references how central banks are involved, in case they think the central banks have no relevance in the economy:
"Interest rates typically decline during recessions as loan demand slows, bond prices rise, and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers."

What Happens to Interest Rates During a Recession?

Interest rates tend to fall during recessions for fundamental reasons and as investors start to price in the likely policy response by the central bank.

www.investopedia.com

 

[RobGMN Premium Member]

Because of the pandemic when everything was shut down. Gonna spin it and blame Trump for it as per your handbook now?

Who was POTUS when the economy tanked?

If Biden is at fault for inflation recovery following the recession that occurred during the previous administration, then the previous administration must be at fault for the recession.

Can you tell us who was the POTUS in said previous administration?
I'll give you a hint: His last name starts with "T" and ends with "rump".

 

[djdilliodon!]

No argument. But you also have to factor in the higher taxes when the value of the house goes up by 20%, then potentially being top-heavy when the market tilts the other way.
And again to mention the fact that sweet mortgage rates are a bad indicator of the economy in general (even though they can be great for someone in a position to capitalize on them).

You seem to know finances, at least for real estate. I'd assume your finance knowledge goes further, but some here may see your post and think the low mortgage is great overall. This explains it a little more for them. Even references how central banks are involved, in case they think the central banks have no relevance in the economy:
"Interest rates typically decline during recessions as loan demand slows, bond prices rise, and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers."

What Happens to Interest Rates During a Recession?

Interest rates tend to fall during recessions for fundamental reasons and as investors start to price in the likely policy response by the central bank.

www.investopedia.com

Interest rates do typically fall during a recession but even with covid going on, I wouldn’t call that a recession. The GDP never declined, spending never stopped. The interest rates are high due to the fact of inflation being so high. They are trying to calm that down. Now why did they really get lower during the trump years? It started from not many people buying houses and many investing in the bond market which causes the fed to lower interest rates. Banks can now borrow at lower rates and this allows us to borrow at lower rates. We have been through recessions before and the rates never got that low. They typically on the low end would be in the 4% range.

Let’s all be aware that covid and how the government handled everything is what caused the mess we are in. We can’t really blame trump or Biden alone.

 

[RobGMN Premium Member]

Interest rates do typically fall during a recession but even with covid going on, I wouldn’t call that a recession. The GDP never declined, spending never stopped. The interest rates are high due to the fact of inflation being so high. They are trying to calm that down. Now why did they really get lower during the trump years? It started from not many people buying houses and many investing in the bond market which causes the fed to lower interest rates. Banks can now borrow at lower rates and this allows us to borrow at lower rates. We have been through recessions before and the rates never got that low. They typically on the low end would be in the 4% range.

Let’s all be aware that covid and how the government handled everything is what caused the mess we are in. We can’t really blame trump or Biden alone.

I'm no economist so I defer to the experts on it, and they claim we experienced two quarters of recession in 2020.
It seems to have affected the rates:

"(According to the National Bureau of Economic Research, the acknowledged arbiter of business-cycle dating, the contraction in economic activity marking the pandemic recession lasted only two months: March and April 2020.)"

"Rates plummeted in 2020 and 2021 in response to the Coronavirus pandemic. By July 2020, the 30-year fixed rate fell below 3% for the first time. And it kept falling to a new record low of just 2.65% in January 2021. The average mortgage rate for that year was 2.96%."​

"Then COVID-19 hit the United States. In response, the Federal Reserve dropped the federal funds rate to between 0% – 0.25%. This caused other short-term and long-term rates to drop.
This move was made to encourage borrowing on home loans, as well as other loans. It also led to a large increase in refinance and mortgage applications. By December, Freddie Mac reported an average mortgage rate for a 30-year FRM sitting at 2.68%"

Mortgage rates had definitely been declining prior, but the pandemic and recession sure seemed to drive them lower than ever expected.

As for the blame game, I try to point out when people are inconsistent in their application of blame or praise.
Saying Biden sucks because inflation is high while excusing Trump for the recession that caused the inflation just doesn't work for me.
Saying Trump is great because he made the stock market hit a historical high while saying Biden is not responsible for faster growth of the market PLUS far exceeding the highs experienced under Trump is disingenuous.
Believing Trump when he says he presided over the greatest economy in history while outright ignoring the facts that prove otherwise is simply stupid.

As a bit of a numbers guy that you seem to be, I'm sure you can see the hypocrisies.

 

[djdilliodon!]

I'm no economist so I defer to the experts on it, and they claim we experienced two quarters of recession in 2020.
It seems to have affected the rates:

"(According to the National Bureau of Economic Research, the acknowledged arbiter of business-cycle dating, the contraction in economic activity marking the pandemic recession lasted only two months: March and April 2020.)"

"Rates plummeted in 2020 and 2021 in response to the Coronavirus pandemic. By July 2020, the 30-year fixed rate fell below 3% for the first time. And it kept falling to a new record low of just 2.65% in January 2021. The average mortgage rate for that year was 2.96%."​

"Then COVID-19 hit the United States. In response, the Federal Reserve dropped the federal funds rate to between 0% – 0.25%. This caused other short-term and long-term rates to drop.
This move was made to encourage borrowing on home loans, as well as other loans. It also led to a large increase in refinance and mortgage applications. By December, Freddie Mac reported an average mortgage rate for a 30-year FRM sitting at 2.68%"

Mortgage rates had definitely been declining prior, but the pandemic and recession sure seemed to drive them lower than ever expected.

As for the blame game, I try to point out when people are inconsistent in their application of blame or praise.
Saying Biden ***** because inflation is high while excusing Trump for the recession that caused the inflation just doesn't work for me.
Saying Trump is great because he made the stock market hit a historical high while saying Biden is not responsible for faster growth of the market PLUS far exceeding the highs experienced under Trump is disingenuous.
Believing Trump when he says he presided over the greatest economy in history while outright ignoring the facts that prove otherwise is simply stupid.

As a bit of a numbers guy that you seem to be, I'm sure you can see the hypocrisies.

It’s exactly why you can’t really point the finger. There are policy decisions that may have some affect on certain things but they normally aren’t going to make tremendous differences . The rates being so high now is a must cause you have to calm inflation. Can’t really blame that on Biden and can’t really blame trump as it was a pandemic.

You research you will find multiple different reasons why rates went so low. There is no doubt the bond market is tied to interest rates. When you have people buying up bonds like crazy, the fed drops rates cause it can screw them in the end. That rate drop directly correlates with bank rates as they get those rates too. This did indeed happen during covid. So if a bank can borrow at .25% and make 2% that is a nice profit. Plus you have tons of banks competing that limits them on how much they can make cause these days it’s so easy to shop around for the best deal.