RE:RE:RE:RE:RE:RE:RE:RE:RE:Air MilesBorrowed money is still dirt cheap by historical comparison. My first mortage was a "builder's special" at 12.75%. 10 years later I sold and didn't make a dime on the house. When rates crashed to near 0 during covid driving real estate to record highs, it was time to sell the rental which closed late Spring. Now sitting on a cash pile and easing in on the pullback. But, real estate is not in my crosshairs. That play is over.
babedinkleman wrote: Capharnaum wrote: Whenever the economy turns sour, high rates won't be sustainable and will crash back towards zero.
Powell is a fool and I think the FED overstates their real capacity of impacting inflation. I believe that their quantitative easing (through the purchase of bonds) has a more potent effect on the money supply than straight up rates.
High rates? Nah.....you've become so accustomed to ridiculously low rates you think what we are seeing are high rates? Fed funds rates of 4%......mortgage rates of 6% or higher are exactly where rates should stay long term so we don't end up in the stupid situation we've been in for the past 6-10 years. This attempting to manage the economy through stupidly low interest rates has been a disaster for the middle and lower class. Hopefully they get understand that now.