Do interest rates worry you?

[masayako]

I pretty much agree with jpinpb:

1. Interest rate rise
2. Less qualifier == Less buyer
3. More inventory
4. More supply == less demand
5. More houses to pick == lower price
6. Less pricy == even less urge to buy
(Why buy when you know it will be lower tomorrow?)
7. An equilibrium between “buy vs rent” will be reach at some point
8. bottom will be reached years from now…

The question is: What is the right thing to own during this time?

[Anonymous]

jp, I agree. 🙂

[Anonymous]

jp, I agree. 🙂

[Anonymous]

jp, I agree. 🙂

[Anonymous]

jp, I agree. 🙂

[Anonymous]

jp, I agree. 🙂

[capeman]

Nailed it on the head jp.

I’m expecting to pay double the current rate by the time I’m going to buy. There has been an insanely unprecedented amount of risk taken on by banks with all of the bad loans. That risk once it is fully realized will be priced into interest rates for those of us waiting this downturn out.

[capeman]

Nailed it on the head jp.

I’m expecting to pay double the current rate by the time I’m going to buy. There has been an insanely unprecedented amount of risk taken on by banks with all of the bad loans. That risk once it is fully realized will be priced into interest rates for those of us waiting this downturn out.

[capeman]

Nailed it on the head jp.

I’m expecting to pay double the current rate by the time I’m going to buy. There has been an insanely unprecedented amount of risk taken on by banks with all of the bad loans. That risk once it is fully realized will be priced into interest rates for those of us waiting this downturn out.

[capeman]

Nailed it on the head jp.

I’m expecting to pay double the current rate by the time I’m going to buy. There has been an insanely unprecedented amount of risk taken on by banks with all of the bad loans. That risk once it is fully realized will be priced into interest rates for those of us waiting this downturn out.

[capeman]

Nailed it on the head jp.

I’m expecting to pay double the current rate by the time I’m going to buy. There has been an insanely unprecedented amount of risk taken on by banks with all of the bad loans. That risk once it is fully realized will be priced into interest rates for those of us waiting this downturn out.

[JWM in SD]

Precisely Capeman. Right now, the Fed Reserve has Negative Non-Borrowed reserves which means that on balance, there are more banks that have had to borrow their reserves from the Fed in order to stay liquid. They are technically insolvent. How long does anyone here really think that situation can last before our foreign creditors and the bond market in general doesn’t have their say about that situation and make a drastic adjustment to compensate for it???

[JWM in SD]

Precisely Capeman. Right now, the Fed Reserve has Negative Non-Borrowed reserves which means that on balance, there are more banks that have had to borrow their reserves from the Fed in order to stay liquid. They are technically insolvent. How long does anyone here really think that situation can last before our foreign creditors and the bond market in general doesn’t have their say about that situation and make a drastic adjustment to compensate for it???

[JWM in SD]

Precisely Capeman. Right now, the Fed Reserve has Negative Non-Borrowed reserves which means that on balance, there are more banks that have had to borrow their reserves from the Fed in order to stay liquid. They are technically insolvent. How long does anyone here really think that situation can last before our foreign creditors and the bond market in general doesn’t have their say about that situation and make a drastic adjustment to compensate for it???

[JWM in SD]

Precisely Capeman. Right now, the Fed Reserve has Negative Non-Borrowed reserves which means that on balance, there are more banks that have had to borrow their reserves from the Fed in order to stay liquid. They are technically insolvent. How long does anyone here really think that situation can last before our foreign creditors and the bond market in general doesn’t have their say about that situation and make a drastic adjustment to compensate for it???

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