Interest rates are going up. Could be the pin prick that pops that bubble

[Natural Citizen]

I think that's just his clunky way of saying increases the debt.

Heh heh. Precisely.

 

[MarathonMike]

Personally I think the most important numbers are 4 and 6. If the 10 year note goes to 4%, and mortgage rates go to 6% then that could be the bubble popper. Below that and I think we'll be OK.

I tend to be agnostic on your position would you expand your reasoning on your reasoning because there is a lot more renting than home buying in a strange shift and retirees will gobble up 6% US bonds in a heart beat.

I wasn't clear. So 4% on the 10 year note I believe is significant because that starts drawing people invested in dividend stocks away from the stock market.

6% mortgages price a lot of people out of the housing market who can afford a median home price of $200K at 5% but not at 6%.

 

[Toddsterpatriot]

That's a stupid, error filled book.

It's only copiously footnoted, end noted, and its content is nearly identical to that of "Secrets of the Temple".

I don't know if the errors were footnoted.

 

[Toddsterpatriot]

but

By my calculation, even a 5 percent rate hike adds a trillion Federal Reserve Notes per year to the growing deficit. Or roughly thereabout. That's about 200 billion Federal Reserve Notes per 1 percent increase on the interest rates. Spending is up about 7 percent and revenue has gone up a whole 1 percent in this so-called booming economy, so this isn't helping the deficit.

They aren't going to have any control over it, and the market will have to respond to reflect the truth of the matter.

In the summer of 2016, the 10 year bond was sitting at 1.3 percent. Now it's over 3 percent. That's a big jump percentage wise. So, we've already been observing rate hikes, irrelevant of any prospective rate hikes to come.

This is pointed more toward the market folk, Toddster, Mack, and kind.

What say you? I'm calling a bust sooner than later, I think thta interest rate hikes are likely going to be the pin prick which finally does it.

The deep state runs the Fed.

They know that to destroy Trump, all they have to do is destroy the economy.

It's not hard to do when you can pull all the strings.

JFK wrote Executive Order 1110 to do away with the Fed, but then he went to Dallas..................

JFK wrote Executive Order 1110 to do away with the Fed,

You should post the text, I'll show you your error.

 

[Natural Citizen]

I wasn't clear. So 4% on the 10 year note I believe is significant because that starts drawing people invested in dividend stocks away from the stock market.

6% mortgages price a lot of people out of the housing market who can afford a median home price of $200K at 5% but not at 6%.

Yep. Agreed.

At those rates we'd likely start seeing people with existing mortgages experiencing monthly hikes as well. It wouldn't be out of the question to see existing mortgages rise as much as a couple hundred dollars a month.

The worst part about that is that a lot of people don't have over a few hundred bucks to their name as it is. I could be wrong about that specific amount, I haven't seen an official average savings report, but people don't have much in their savings to cover that.

 

[MarathonMike]

I wasn't clear. So 4% on the 10 year note I believe is significant because that starts drawing people invested in dividend stocks away from the stock market.

6% mortgages price a lot of people out of the housing market who can afford a median home price of $200K at 5% but not at 6%.

Yep. Agreed.

At those rates we'd likely start seeing people with existing mortgages experiencing monthly hikes as well. It wouldn't be out of the question to see existing mortgages rise as much as a couple hundred dollars a month.

The worst part about that is that a lot of people don't have over a few hundred bucks to their name as it is. I could be wrong about that specific amount, I haven't seen an official average savings report, but people don't have much in their savings to cover that.

The various reports I've read are pretty bleak. Most people (~60%) are basically living check to check with less than 2 thousand in the bank.

 

[william the wie]

I think changes in lifestyle and life expectancy are confusing how the market works. No joke.

 

[william the wie]

Take me for example, no debts for 26 years, roughly 10 years income in various accounts and neighbors who are in the same shape or have negative net worth. Some people go one way others go another way.

 

[Oddball]

That's a stupid, error filled book.

It's only copiously footnoted, end noted, and its content is nearly identical to that of "Secrets of the Temple".

I don't know if the errors were footnoted.

How about posting a list of the errors?

 

[Toddsterpatriot]

That's a stupid, error filled book.

It's only copiously footnoted, end noted, and its content is nearly identical to that of "Secrets of the Temple".

I don't know if the errors were footnoted.

How about posting a list of the errors?

Page 27...….

When a borrower cannot repay and there are no assets which can be taken to compensate, the bank must write off that loan as a loss- However, since most of the money originally was created out of nothing and cost the bank nothing except bookkeeping overhead, there is little of tangible value that is actual lost. It is primarily a bookkeeping entry.

https://wrathoftheawakenedsaxon.fil...romjekyllislandbyg-edward-g-edwardgriffin.pdf

Any book about banking that says something that stupid...…..complete waste of time.

 

[Oddball]

That's a stupid, error filled book.

It's only copiously footnoted, end noted, and its content is nearly identical to that of "Secrets of the Temple".

I don't know if the errors were footnoted.

How about posting a list of the errors?

Page 27...….

When a borrower cannot repay and there are no assets which can be taken to compensate, the bank must write off that loan as a loss- However, since most of the money originally was created out of nothing and cost the bank nothing except bookkeeping overhead, there is little of tangible value that is actual lost. It is primarily a bookkeeping entry.

https://wrathoftheawakenedsaxon.fil...romjekyllislandbyg-edward-g-edwardgriffin.pdf

Any book about banking that says something that stupid...…..complete waste of time.

The point is refuted in what way?...What is the error?

 

[Toddsterpatriot]

That's a stupid, error filled book.

It's only copiously footnoted, end noted, and its content is nearly identical to that of "Secrets of the Temple".

I don't know if the errors were footnoted.

How about posting a list of the errors?

Page 27...….

When a borrower cannot repay and there are no assets which can be taken to compensate, the bank must write off that loan as a loss- However, since most of the money originally was created out of nothing and cost the bank nothing except bookkeeping overhead, there is little of tangible value that is actual lost. It is primarily a bookkeeping entry.

https://wrathoftheawakenedsaxon.fil...romjekyllislandbyg-edward-g-edwardgriffin.pdf

Any book about banking that says something that stupid...…..complete waste of time.

The point is refuted in what way?...What is the error?

Do you agree with the book that loan defaults "cost the bank nothing except bookkeeping overhead, there is little of tangible value that is actual lost"?

 

[william the wie]

There are several additional problems in predicting/refuting this economy because of low growth under Obama, long standing trading problems and unneeded regulations. The more those problems are solved the more catch up growth we will have in addition to the normal 3-4% growth that we did not have under Obama.

 

[Natural Citizen]

Historic, certainly predictable, market drop today.

By default, the market must and is now dictating the truth of the matter and the chickens will be coming home to roost. Soon.

If anyone thinks the recent fake protests have been too aggressive, get ready for real protest. When people lose everything and have nothing left to lose...they lose it.

 

[Natural Citizen]

Clock's tickin, boys. Heh heh. Any week now...

 

[Votto]

Short the market!

Make a killing!

 

[Natural Citizen]

The talking heads were talking about the correction territory today. Heh heh.

A 50% correction isn't outta the question. Huh uh. Could you imagine?

 

[Natural Citizen]

What! The unconstitutional Federal Reserve raised the rates today? Dang.

The market plummeted afterward. Worst month since 1931. Whoda thunkit, huh? lol.

Anyway. Your mortgage just went up. As did your credit card bill. And your car loan. And every other loan you have out.

It's a hell of a thing.

 

[Toddsterpatriot]

What! The unconstitutional Federal Reserve raised the rates today? Dang.

The market plummeted afterward. Worst month since 1931. Whoda thunkit, huh? lol.

Anyway. Your mortgage just went up. As did your credit card bill. And your car loan. And every other loan you have out.

It's a hell of a thing.

The unconstitutional Federal Reserve

Durr.

Your mortgage just went up.

Fixed rate, no change.

As did your credit card bill.

Don't carry a balance.

And your car loan.

Who has an adjustable rate car loan?