H&R Real Estate Investment Trust HRUFF

Does the BOC and FED stop at 3%

[SNAKEYBOY]

Or do they dare play with fire and go to 3.50%-4.00%.  That would like cause a long depression

[Frankie10]

Not even the FED knows...

[SNAKEYBOY]

I can't see much real estate transactions going on even now with a 5% fixed.    Not unless prices come down substantially. The commercial real estate is also drying up

[dart321]

You people don't get it do ya. The BOC has to do whatever the U.S. does. We seen all this along time ago back in the late 1970's and early 1980's the last time we seen inflation like this. Interest rate will be increased by 1% every time they meet from this point on until inflation drops dramaticly and along with this housing crashes along with rentals, reits and other real estate

[SNAKEYBOY]

1% all the time? What is this comedy central? We'll be lucky if rates get above 3% and even if they do the 10 year will go lower.   Billions/Trillions is now spent servicing the debt instead of the economy. GDP will be bad

[Frankie10]

well said Snake. this is my base case.

[Frankie10]

much different now. debt to gdp was around 30% back then now is 130%.. deficit to gdp was around 3% now 7%... with each hike, the fed is accelerating the debt spiral. if the fed were to hike the way you are suggesting, something would break and they would be forced to start QE - destroying any confience left in the central bank. credit market has suggested for quite sometime now rates get to 3-3

[bttmfischer]

I completely agree dart321. Having witnessed runaway inflation as a child, all the signs are there that this is only the beginning  of the real inflation, and as a consequence, there will be a price-wage war in a while. With inflation making money less valuable will mean that the huge government loans could be paid off on  20-25%  or even bigger discounts. As we all heard, the