rates moving up fast

[Rt.66]

US public debt is 61% of GDP. Japan’s public debt is 171% of GDP. Quantitative easing in Japan, QE in the US.

in Japan 20 years and counting and no inflation to speak of aside from brief spurts that quickly retraced.
——————–
Larry Greenberg
“And then there is Japan’s experience. The same inflation fears were voiced when Japan implemented numerous huge fiscal packages in the 1990’s and then instituted a policy of aggressive quantitative monetary easing during the five years to March 2006. The central bank key interest rate has not exceeded 0.5% since August 1995, and public debt is climbing to 200% of GDP, far beyond the U.S. situation. Instead of inflation, Japan remains in a state of deflation.”

[Ren]

Personal anecdote only: my wife and I haven’t seen a tightening of credit in any way, in either our business or personal lines, and we both have high 700’s/low 800’s scores with all three agencies. There has been no significant rate change. Last week, Citi raised my limit by a couple of thousand on a card that never has a balance higher than $50. Schwab bent over backwards trying to interest us in mortgage products after we asked a few questions.

I have seen tightening for people with questionable credit, which in my mind is the way it should be. People with good (730+) credit, 20% down, low debt, and moderate income can easily qualify for a mortgage today. Credit for larger businesses may be another story.

[Ren]

Personal anecdote only: my wife and I haven’t seen a tightening of credit in any way, in either our business or personal lines, and we both have high 700’s/low 800’s scores with all three agencies. There has been no significant rate change. Last week, Citi raised my limit by a couple of thousand on a card that never has a balance higher than $50. Schwab bent over backwards trying to interest us in mortgage products after we asked a few questions.

I have seen tightening for people with questionable credit, which in my mind is the way it should be. People with good (730+) credit, 20% down, low debt, and moderate income can easily qualify for a mortgage today. Credit for larger businesses may be another story.

[Ren]

Personal anecdote only: my wife and I haven’t seen a tightening of credit in any way, in either our business or personal lines, and we both have high 700’s/low 800’s scores with all three agencies. There has been no significant rate change. Last week, Citi raised my limit by a couple of thousand on a card that never has a balance higher than $50. Schwab bent over backwards trying to interest us in mortgage products after we asked a few questions.

I have seen tightening for people with questionable credit, which in my mind is the way it should be. People with good (730+) credit, 20% down, low debt, and moderate income can easily qualify for a mortgage today. Credit for larger businesses may be another story.

[Ren]

Personal anecdote only: my wife and I haven’t seen a tightening of credit in any way, in either our business or personal lines, and we both have high 700’s/low 800’s scores with all three agencies. There has been no significant rate change. Last week, Citi raised my limit by a couple of thousand on a card that never has a balance higher than $50. Schwab bent over backwards trying to interest us in mortgage products after we asked a few questions.

I have seen tightening for people with questionable credit, which in my mind is the way it should be. People with good (730+) credit, 20% down, low debt, and moderate income can easily qualify for a mortgage today. Credit for larger businesses may be another story.

[Ren]

Personal anecdote only: my wife and I haven’t seen a tightening of credit in any way, in either our business or personal lines, and we both have high 700’s/low 800’s scores with all three agencies. There has been no significant rate change. Last week, Citi raised my limit by a couple of thousand on a card that never has a balance higher than $50. Schwab bent over backwards trying to interest us in mortgage products after we asked a few questions.

I have seen tightening for people with questionable credit, which in my mind is the way it should be. People with good (730+) credit, 20% down, low debt, and moderate income can easily qualify for a mortgage today. Credit for larger businesses may be another story.

[Rt.66]

Ren, I don’t have questionable credit. And like you, up until three days ago had seen no credit contraction, personally.

Mish had posts a month or more back on this subject and I was, like you, wondering what they were talking about.

I think its odd that with all the effort the Gov. has put to ease credit that its slowly drying up (from what I’ve read and now experienced). BofAsses even told me they were tightening up credit and not giving deals. I told them I was just going to pay off the balance and then they would get nothing, that did not help because that is exactly what they want.

Agian I had my card since 1991, ZERO lates, perfect credit, measly $4900 balance, many times over on deposit, and they just want the cash. Mortgages are going bad left and right, now the idea of giving credit must make them nausious and now they really just need to build cash reserves if they have any hope of weathering the next wave of resets (which they don’t w/o Gov. aid).

A friend owned a Cell/Electrical company and even with perfect credit the bank just did a one-eighty and stopped new credit on his revolving account and started harrasing him to pay off everthing outstanding ASAP.

So I agree that there are some out there who still have not felt the contraction, but that does not make it any less real.

[Rt.66]

Ren, I don’t have questionable credit. And like you, up until three days ago had seen no credit contraction, personally.

Mish had posts a month or more back on this subject and I was, like you, wondering what they were talking about.

I think its odd that with all the effort the Gov. has put to ease credit that its slowly drying up (from what I’ve read and now experienced). BofAsses even told me they were tightening up credit and not giving deals. I told them I was just going to pay off the balance and then they would get nothing, that did not help because that is exactly what they want.

Agian I had my card since 1991, ZERO lates, perfect credit, measly $4900 balance, many times over on deposit, and they just want the cash. Mortgages are going bad left and right, now the idea of giving credit must make them nausious and now they really just need to build cash reserves if they have any hope of weathering the next wave of resets (which they don’t w/o Gov. aid).

A friend owned a Cell/Electrical company and even with perfect credit the bank just did a one-eighty and stopped new credit on his revolving account and started harrasing him to pay off everthing outstanding ASAP.

So I agree that there are some out there who still have not felt the contraction, but that does not make it any less real.

[Rt.66]

Ren, I don’t have questionable credit. And like you, up until three days ago had seen no credit contraction, personally.

Mish had posts a month or more back on this subject and I was, like you, wondering what they were talking about.

I think its odd that with all the effort the Gov. has put to ease credit that its slowly drying up (from what I’ve read and now experienced). BofAsses even told me they were tightening up credit and not giving deals. I told them I was just going to pay off the balance and then they would get nothing, that did not help because that is exactly what they want.

Agian I had my card since 1991, ZERO lates, perfect credit, measly $4900 balance, many times over on deposit, and they just want the cash. Mortgages are going bad left and right, now the idea of giving credit must make them nausious and now they really just need to build cash reserves if they have any hope of weathering the next wave of resets (which they don’t w/o Gov. aid).

A friend owned a Cell/Electrical company and even with perfect credit the bank just did a one-eighty and stopped new credit on his revolving account and started harrasing him to pay off everthing outstanding ASAP.

So I agree that there are some out there who still have not felt the contraction, but that does not make it any less real.

[Rt.66]

Ren, I don’t have questionable credit. And like you, up until three days ago had seen no credit contraction, personally.

Mish had posts a month or more back on this subject and I was, like you, wondering what they were talking about.

I think its odd that with all the effort the Gov. has put to ease credit that its slowly drying up (from what I’ve read and now experienced). BofAsses even told me they were tightening up credit and not giving deals. I told them I was just going to pay off the balance and then they would get nothing, that did not help because that is exactly what they want.

Agian I had my card since 1991, ZERO lates, perfect credit, measly $4900 balance, many times over on deposit, and they just want the cash. Mortgages are going bad left and right, now the idea of giving credit must make them nausious and now they really just need to build cash reserves if they have any hope of weathering the next wave of resets (which they don’t w/o Gov. aid).

A friend owned a Cell/Electrical company and even with perfect credit the bank just did a one-eighty and stopped new credit on his revolving account and started harrasing him to pay off everthing outstanding ASAP.

So I agree that there are some out there who still have not felt the contraction, but that does not make it any less real.

[Rt.66]

Ren, I don’t have questionable credit. And like you, up until three days ago had seen no credit contraction, personally.

Mish had posts a month or more back on this subject and I was, like you, wondering what they were talking about.

I think its odd that with all the effort the Gov. has put to ease credit that its slowly drying up (from what I’ve read and now experienced). BofAsses even told me they were tightening up credit and not giving deals. I told them I was just going to pay off the balance and then they would get nothing, that did not help because that is exactly what they want.

Agian I had my card since 1991, ZERO lates, perfect credit, measly $4900 balance, many times over on deposit, and they just want the cash. Mortgages are going bad left and right, now the idea of giving credit must make them nausious and now they really just need to build cash reserves if they have any hope of weathering the next wave of resets (which they don’t w/o Gov. aid).

A friend owned a Cell/Electrical company and even with perfect credit the bank just did a one-eighty and stopped new credit on his revolving account and started harrasing him to pay off everthing outstanding ASAP.

So I agree that there are some out there who still have not felt the contraction, but that does not make it any less real.

[patientrenter]

Rt 66, all you’re seeing on credit is some retrenchment toward historical norms. On housing, the biggest user of credit in our economy, the govt continues to allow vast amounts of truly incredibly easy and cheap money.

Check this story from the Housing Wire:

http://www.housingwire.com/2009/05/29/hud-details-use-of-tax-credit-toward-closing-costs/

Apparently 3.5% downpayments were too high. I think downpayments of less than 30% or so in an environment of severe price drops in RE are ludicrously small. And 20% is an historical minimum standard for most people.

[patientrenter]

Rt 66, all you’re seeing on credit is some retrenchment toward historical norms. On housing, the biggest user of credit in our economy, the govt continues to allow vast amounts of truly incredibly easy and cheap money.

Check this story from the Housing Wire:

http://www.housingwire.com/2009/05/29/hud-details-use-of-tax-credit-toward-closing-costs/

Apparently 3.5% downpayments were too high. I think downpayments of less than 30% or so in an environment of severe price drops in RE are ludicrously small. And 20% is an historical minimum standard for most people.

[patientrenter]

Rt 66, all you’re seeing on credit is some retrenchment toward historical norms. On housing, the biggest user of credit in our economy, the govt continues to allow vast amounts of truly incredibly easy and cheap money.

Check this story from the Housing Wire:

http://www.housingwire.com/2009/05/29/hud-details-use-of-tax-credit-toward-closing-costs/

Apparently 3.5% downpayments were too high. I think downpayments of less than 30% or so in an environment of severe price drops in RE are ludicrously small. And 20% is an historical minimum standard for most people.

[patientrenter]

Rt 66, all you’re seeing on credit is some retrenchment toward historical norms. On housing, the biggest user of credit in our economy, the govt continues to allow vast amounts of truly incredibly easy and cheap money.

Check this story from the Housing Wire:

http://www.housingwire.com/2009/05/29/hud-details-use-of-tax-credit-toward-closing-costs/

Apparently 3.5% downpayments were too high. I think downpayments of less than 30% or so in an environment of severe price drops in RE are ludicrously small. And 20% is an historical minimum standard for most people.

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