[Bob]

[quote=Chris Scoreboard Johnston]For these reasons I expect to see a rally very soon in 30 Yr Bond prices.[/quote]

What do you estimate mortgage rates will be on a 30yr. fixed by the 4th of July ?

[Bob]

[quote=Chris Scoreboard Johnston]For these reasons I expect to see a rally very soon in 30 Yr Bond prices.[/quote]

What do you estimate mortgage rates will be on a 30yr. fixed by the 4th of July ?

[Bob]

[quote=Chris Scoreboard Johnston]For these reasons I expect to see a rally very soon in 30 Yr Bond prices.[/quote]

What do you estimate mortgage rates will be on a 30yr. fixed by the 4th of July ?

[Bob]

[quote=Chris Scoreboard Johnston]For these reasons I expect to see a rally very soon in 30 Yr Bond prices.[/quote]

What do you estimate mortgage rates will be on a 30yr. fixed by the 4th of July ?

[Bob]

[quote=Chris Scoreboard Johnston]For these reasons I expect to see a rally very soon in 30 Yr Bond prices.[/quote]

What do you estimate mortgage rates will be on a 30yr. fixed by the 4th of July ?

[Bob]

[quote=Rt.66]Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”[/quote]

There are liberal economists that I respect, and then there are political hacks like Krugman.

The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.

As a result of Fed/bank action, sales activity has increased substantially during the last three months, which has created bidding wars and higher prices.

But the true inflationary effect of the Fed actions will take time to filter throughout the entire economy, and Krugman knows this, but since his objective in this article was to bash banks, he conveniently left out that fact.

[Bob]

[quote=Rt.66]Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”[/quote]

There are liberal economists that I respect, and then there are political hacks like Krugman.

The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.

As a result of Fed/bank action, sales activity has increased substantially during the last three months, which has created bidding wars and higher prices.

But the true inflationary effect of the Fed actions will take time to filter throughout the entire economy, and Krugman knows this, but since his objective in this article was to bash banks, he conveniently left out that fact.

[Bob]

[quote=Rt.66]Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”[/quote]

There are liberal economists that I respect, and then there are political hacks like Krugman.

The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.

As a result of Fed/bank action, sales activity has increased substantially during the last three months, which has created bidding wars and higher prices.

But the true inflationary effect of the Fed actions will take time to filter throughout the entire economy, and Krugman knows this, but since his objective in this article was to bash banks, he conveniently left out that fact.

[Bob]

[quote=Rt.66]Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”[/quote]

There are liberal economists that I respect, and then there are political hacks like Krugman.

The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.

As a result of Fed/bank action, sales activity has increased substantially during the last three months, which has created bidding wars and higher prices.

But the true inflationary effect of the Fed actions will take time to filter throughout the entire economy, and Krugman knows this, but since his objective in this article was to bash banks, he conveniently left out that fact.

[Bob]

[quote=Rt.66]Krugman in inflation

“Now, it’s true that the Fed has taken unprecedented actions lately. More specifically, it has been buying lots of debt both from the government and from the private sector, and paying for these purchases by crediting banks with extra reserves. And in ordinary times, this would be highly inflationary: banks, flush with reserves, would increase loans, which would drive up demand, which would push up prices.

But these aren’t ordinary times. Banks aren’t lending out their extra reserves. They’re just sitting on them — in effect, they’re sending the money right back to the Fed. So the Fed isn’t really printing money after all.”[/quote]

There are liberal economists that I respect, and then there are political hacks like Krugman.

The reality is, banks ARE lending again. In fact, some lenders are going so far as to once again offer exotic loans such as interest only, etc..But in today’s world, banks will lend only to applicants that are qualified, and thats the way it should be.

As a result of Fed/bank action, sales activity has increased substantially during the last three months, which has created bidding wars and higher prices.

But the true inflationary effect of the Fed actions will take time to filter throughout the entire economy, and Krugman knows this, but since his objective in this article was to bash banks, he conveniently left out that fact.

[Bob]

[quote] I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.[/quote]

Actually, rates are going up independent of what Bernanke wants, because at this point there is very little he can do other than continue to purchase US securities. As for the overall real estate market nationwide, well, it sucks. Unlike in California, most of the country has excessive inventory that continues to put downward pressure on housing prices.

[quote]On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).[/quote]

Depending on the market, what currently exists is a temporary stabilization of the market at the low end due to government intervention which has artificially reduced inventory. This is true throughout Southern California, but NOT true in markets like South Florida, where prices continue to drop significantly. As far as I know, the state of Florida did not impose any moratoriums as did California.

[Bob]

[quote] I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.[/quote]

Actually, rates are going up independent of what Bernanke wants, because at this point there is very little he can do other than continue to purchase US securities. As for the overall real estate market nationwide, well, it sucks. Unlike in California, most of the country has excessive inventory that continues to put downward pressure on housing prices.

[quote]On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).[/quote]

Depending on the market, what currently exists is a temporary stabilization of the market at the low end due to government intervention which has artificially reduced inventory. This is true throughout Southern California, but NOT true in markets like South Florida, where prices continue to drop significantly. As far as I know, the state of Florida did not impose any moratoriums as did California.

[Bob]

[quote] I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.[/quote]

Actually, rates are going up independent of what Bernanke wants, because at this point there is very little he can do other than continue to purchase US securities. As for the overall real estate market nationwide, well, it sucks. Unlike in California, most of the country has excessive inventory that continues to put downward pressure on housing prices.

[quote]On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).[/quote]

Depending on the market, what currently exists is a temporary stabilization of the market at the low end due to government intervention which has artificially reduced inventory. This is true throughout Southern California, but NOT true in markets like South Florida, where prices continue to drop significantly. As far as I know, the state of Florida did not impose any moratoriums as did California.

[Bob]

[quote] I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.[/quote]

Actually, rates are going up independent of what Bernanke wants, because at this point there is very little he can do other than continue to purchase US securities. As for the overall real estate market nationwide, well, it sucks. Unlike in California, most of the country has excessive inventory that continues to put downward pressure on housing prices.

[quote]On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).[/quote]

Depending on the market, what currently exists is a temporary stabilization of the market at the low end due to government intervention which has artificially reduced inventory. This is true throughout Southern California, but NOT true in markets like South Florida, where prices continue to drop significantly. As far as I know, the state of Florida did not impose any moratoriums as did California.

[Bob]

[quote] I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.[/quote]

Actually, rates are going up independent of what Bernanke wants, because at this point there is very little he can do other than continue to purchase US securities. As for the overall real estate market nationwide, well, it sucks. Unlike in California, most of the country has excessive inventory that continues to put downward pressure on housing prices.

[quote]On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).[/quote]

Depending on the market, what currently exists is a temporary stabilization of the market at the low end due to government intervention which has artificially reduced inventory. This is true throughout Southern California, but NOT true in markets like South Florida, where prices continue to drop significantly. As far as I know, the state of Florida did not impose any moratoriums as did California.

[Author]

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