meloshouldgo wrote:

holfresh wrote:

meloshouldgo wrote:

mreinman wrote:

holfresh wrote:

mreinman wrote:

holfresh wrote:By the way..Trump contradicts himself which is no surprise..He claims the economy is in shambles yet thinks the FED should raise rates...When the economy is in shambles then you lower rates..

is that really a one to one? Many other factors there such as the bond market and inflation.

I'm not sure what you mean one to one..

sometimes raising the rates can help the economy. Rates do not necessarily follow the lead of the progression of the economy.

Lowering rates is only really helping the banks. It is encouraging them to take more and more unrealistic risks and generate even more profit for themselves. It has almost no benefit for the average Joe. Wasn't always like this, but this how **** works now, it's the new normal. More wealth is being created and the middle-class is getting poorer as a percent of the overall economy.

No..Banks make more money when rates are higher..they can charge higher interest on their products.. A low interest rate environment helps consumers and business because loans are cheaper..People buy houses and car etc..Rates are kept low to spur economic growth..Low rate helps the stock market as well..People invest in equities when yield is low which is why Trump refer to a stock market bubble...etc..

You may want to check your facts. Banks make money by charging a premium on top of one of the basic rates most frequently the 10 year bond rate. When the bond rate is 2℅ and the market supports 4℅ they are making 2℅ profit. When the bond rate is zero percent in the same market they are making 4℅ profit. As the bond rate goes higher the lending rate goes higher demand falls they make less money.

Sorry....but banks make more money in a high interest rate environment. Just check earnings and stock prices, for any major bank, during this long low interest period. No one wants to own a bank equity in low interest cycles. Low interest rates also generate less working capital for banks as no one wants to put money into savings, money market, or CD accounts when rates are low. Less access to money gives banks less Capital to put to work and generate income. Yes, they can borrow federal funds but the spread is so small, its hard for them to produce profits. And as you can see with your mortgage payment, banks are making the lowest amounts off loans in decades. They would much rather Be making a lot more interest than currently available.

Nalod wrote:

holfresh wrote:Guilliani suggesting that Trump shouldn't show up for the rest of the debates...That's what a butt whooping feels like folks...

Here you go Briggs.......
She can be yours again!

She was under rated in her day But alas sometimes we fall out of love

mreinman wrote:

meloshouldgo wrote:Nothing is that simplistic, but low rates absolutely increase affordability. Ate you saying this isn't exactly what happened during the real estate bubble? Hookers end up buying multiple properties, see the Big Short if you haven't already. But to your point that wouldn't be possible without associated corrupt lending practices. Both played roles in making this possible.

of course low rates increase affordability but it does not change the value of a home from 200k to 350k. It may at times not even affect it at all.

Impact of ZIRP on home prices - they actually have a chart on how home prices increase due to increased demand created by ZIRP

http://www.cnbc.com/2015/09/11/if-mortgage-rates-go-to-6-heres-what-happens-to-housing.html

HofstraBBall wrote:

meloshouldgo wrote:

holfresh wrote:

meloshouldgo wrote:

mreinman wrote:

holfresh wrote:

mreinman wrote:

holfresh wrote:By the way..Trump contradicts himself which is no surprise..He claims the economy is in shambles yet thinks the FED should raise rates...When the economy is in shambles then you lower rates..

is that really a one to one? Many other factors there such as the bond market and inflation.

I'm not sure what you mean one to one..

sometimes raising the rates can help the economy. Rates do not necessarily follow the lead of the progression of the economy.

Lowering rates is only really helping the banks. It is encouraging them to take more and more unrealistic risks and generate even more profit for themselves. It has almost no benefit for the average Joe. Wasn't always like this, but this how **** works now, it's the new normal. More wealth is being created and the middle-class is getting poorer as a percent of the overall economy.

No..Banks make more money when rates are higher..they can charge higher interest on their products.. A low interest rate environment helps consumers and business because loans are cheaper..People buy houses and car etc..Rates are kept low to spur economic growth..Low rate helps the stock market as well..People invest in equities when yield is low which is why Trump refer to a stock market bubble...etc..

You may want to check your facts. Banks make money by charging a premium on top of one of the basic rates most frequently the 10 year bond rate. When the bond rate is 2℅ and the market supports 4℅ they are making 2℅ profit. When the bond rate is zero percent in the same market they are making 4℅ profit. As the bond rate goes higher the lending rate goes higher demand falls they make less money.

Sorry....but banks make more money in a high interest rate environment. Just check earnings and stock prices, for any major bank, during this long low interest period. No one wants to own a bank equity in low interest cycles. Low interest rates also generate less working capital for banks as no one wants to put money into savings, money market, or CD accounts when rates are low. Less access to money gives banks less Capital to put to work and generate income. Yes, they can borrow federal funds but the spread is so small, its hard for them to produce profits. And as you can see with your mortgage payment, banks are making the lowest amounts off loans in decades. They would much rather Be making a lot more interest than currently available.

Yeah? Well the Wall St Journal thinks otherwise

http://www.wsj.com/articles/u-s-banking-industry-profits-racing-to-near-record-levels-1407773976

mreinman wrote:

meloshouldgo wrote:

mreinman wrote:

meloshouldgo wrote:Nothing is that simplistic, but low rates absolutely increase affordability. Ate you saying this isn't exactly what happened during the real estate bubble? Hookers end up buying multiple properties, see the Big Short if you haven't already. But to your point that wouldn't be possible without associated corrupt lending practices. Both played roles in making this possible.

of course low rates increase affordability but it does not change the value of a home from 200k to 350k. It may at times not even affect it at all.

Impact of ZIRP on home prices - they actually have a chart on how home prices increase due to increased demand created by ZIRP

http://www.cnbc.com/2015/09/11/if-mortgage-rates-go-to-6-heres-what-happens-to-housing.html

The result is that some very hot markets—including San Francisco, San Jose, California, and Miami—may be overvalued by more than 20 percent.

I buy that. Some jump but not crazy.

However, if they are just keeping rates down to avoid or delay an inevitable crash, that is a different story.

Why did it crash last time while rates were still low? Lots of other factors in there. I expect a real estate crash regardless of whether they raise rates or not. Also, even if they raise it, it could take a really really long time to jump 2%.

The 200 to 350 was just an off the cuff remark, but house prices did go up quite a bit during ZIRP. Market crashed because of predatory lending and crisis of confidence in subprime loans and associated derivatives, the yield on the 10 year had little to do with the crash, other than making insane amount of borrowing possible in the years leading up to it.

holfresh wrote:

meloshouldgo wrote:

HofstraBBall wrote:

meloshouldgo wrote:

holfresh wrote:

meloshouldgo wrote:

mreinman wrote:

holfresh wrote:

mreinman wrote:

holfresh wrote:By the way..Trump contradicts himself which is no surprise..He claims the economy is in shambles yet thinks the FED should raise rates...When the economy is in shambles then you lower rates..

is that really a one to one? Many other factors there such as the bond market and inflation.

I'm not sure what you mean one to one..

sometimes raising the rates can help the economy. Rates do not necessarily follow the lead of the progression of the economy.

Lowering rates is only really helping the banks. It is encouraging them to take more and more unrealistic risks and generate even more profit for themselves. It has almost no benefit for the average Joe. Wasn't always like this, but this how **** works now, it's the new normal. More wealth is being created and the middle-class is getting poorer as a percent of the overall economy.

No..Banks make more money when rates are higher..they can charge higher interest on their products.. A low interest rate environment helps consumers and business because loans are cheaper..People buy houses and car etc..Rates are kept low to spur economic growth..Low rate helps the stock market as well..People invest in equities when yield is low which is why Trump refer to a stock market bubble...etc..

You may want to check your facts. Banks make money by charging a premium on top of one of the basic rates most frequently the 10 year bond rate. When the bond rate is 2℅ and the market supports 4℅ they are making 2℅ profit. When the bond rate is zero percent in the same market they are making 4℅ profit. As the bond rate goes higher the lending rate goes higher demand falls they make less money.

Sorry....but banks make more money in a high interest rate environment. Just check earnings and stock prices, for any major bank, during this long low interest period. No one wants to own a bank equity in low interest cycles. Low interest rates also generate less working capital for banks as no one wants to put money into savings, money market, or CD accounts when rates are low. Less access to money gives banks less Capital to put to work and generate income. Yes, they can borrow federal funds but the spread is so small, its hard for them to produce profits. And as you can see with your mortgage payment, banks are making the lowest amounts off loans in decades. They would much rather Be making a lot more interest than currently available.

Yeah? Well the Wall St Journal thinks otherwise

http://www.wsj.com/articles/u-s-banking-industry-profits-racing-to-near-record-levels-1407773976

Quit while you are behind...Folks are trying to spare you the embarrassment..

Yeah ok, first you get schooled then you come back with this horse****

Bonn1997 wrote:Dr. Howard Dean raising the possibility Donald Trump uses cocaine

I think he was free basing in the back with a few 19 year old chicks.