Financial 15 Split Corp T.FTN

Why investors should think about the ‘unthinkable.’

[Donwaan]

Bank of America is considering a scenario in which central banks may not cut interest rates this year. https://www.marketwatch.com/story/bank-of-america-considers-unthinkable-scenario-of-no-irate-cuts-this-year-f1daacaa?mod=home-page

[mouserman]

Really 30 or 40 years ago ,  todays interest rate was considered normal, and inflation was almost nonexistent. Reality is people are HOPING for a few interest rates cuts in 2024 , but nothing is guaranteed.

[mouserman]

Had that wrong, the 80's and 90's actually had higher mortgage interest rates than todays, and it really didnt get down to 5% until after the year 2000. Decades  of cheap money  didnt really accomplish much, ALTHO the US managed to get to a record 34 trillion $ debt by the end of 2023...And war-monger JOE wants to throw more at the wars on the other side of the world.  Time

[Donwaan]

When about 20% of the US economy is directly or indirectly supported by military spending what incentive is there for them to stop war mongering? Many Americans are being made wealthy so the show must go endlessly on. How this impacts FTN I'll leave for others to explore.

[mouserman]

Yeah who cares about the lives lost fighting a political war on the other side of the world.... and the cost to the taxpayer. US GDP includes military arms sales.... SUPPORTED by the taxpayer.  Again jmho

[Torontojay]

It's best to start thinking not in terms of interest rates but household debt servicing costs as a percentage of disposable income. Canada is paying more towards servicing the mortgage debt today than in the 1990's even though interest rates were a lot higher back then. 

[bubba9]

There's a lot of people who never should have bought homes in the first place. They based everything they own on a best case scenario. You may hate the qualifying rate that the gov't initiated but it saved a lot of people from what is happening now. Banks, mortgage brokers and real estate agents should be ashamed. The quest for the holy buck set people up for failure... Things like one

[mouserman]

yes and from what i have been reading, credit card debt , car loans etc...are at alltime high levels of default on top ( and because of ) mortgage increases.

[mouserman]

So this from TD trading desk today: Low-income borrowers are increasingly missing payments on their auto loans and credit cards, and missed the boat on ultra-low mortgage rates, according to a new report from the Federal Reserve Bank of New York. The New York Fed used anonymized Equifax EFX credit report data as well as income data from the 2016 Census Bureau American Community Survey. The

[NoShoesNoShirt]

I don't think low income households will affect jpm, gs, c, and bac.