- This topic has 70 replies, 10 voices, and was last updated 16 years, 10 months ago by NotCranky.
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February 27, 2008 at 10:50 AM #160802February 27, 2008 at 11:38 AM #161142barnaby33Participant
coop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.
Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.
Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.
Josh
February 27, 2008 at 11:38 AM #161229barnaby33Participantcoop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.
Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.
Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.
Josh
February 27, 2008 at 11:38 AM #161160barnaby33Participantcoop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.
Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.
Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.
Josh
February 27, 2008 at 11:38 AM #161125barnaby33Participantcoop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.
Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.
Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.
Josh
February 27, 2008 at 11:38 AM #160832barnaby33Participantcoop, Helicopter Boy can only lower rates 3 more basis points; I think you meant 300 basis points, or 3%. The FED doesn’t set interest rates. It follows credit demand. All Bernanke is saying is that nobody has any collateral that banks will lend against at this point.
Rustico, there are lots of reasons why thats a dangerous ploy. For one CC rates aren’t fixed and can be changed at any time for almost any reason. Two high interest rates on loans and lower prices are a win for first time buyers and those with large down payments (savers). The FED can lower interest rates all it wants at this point, mortgage rates will go up to compensate for risk past and future. Long term obligations should if possible be financed with long term debt. If not you are playing arbitrage, which is just a fancy word for gambling.
Ultimately JWM has it right. House prices are going to continue to decline for the next few years and if you buy now, even at a low interest rate, you are a sucker.
Josh
February 27, 2008 at 12:01 PM #161157NotCrankyParticipant“Rustico, there are lots of reasons why thats a dangerous ploy.”
You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!
February 27, 2008 at 12:01 PM #160847NotCrankyParticipant“Rustico, there are lots of reasons why thats a dangerous ploy.”
You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!
February 27, 2008 at 12:01 PM #161175NotCrankyParticipant“Rustico, there are lots of reasons why thats a dangerous ploy.”
You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!
February 27, 2008 at 12:01 PM #161140NotCrankyParticipant“Rustico, there are lots of reasons why thats a dangerous ploy.”
You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!
February 27, 2008 at 12:01 PM #161244NotCrankyParticipant“Rustico, there are lots of reasons why thats a dangerous ploy.”
You must really miss me Josh? I was not even on the thread up until now.LOL. Now I am off…Have a nice day you all!
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