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I thought we've been through all of this before.

Scenario #1:
You're a Boomer and buy a home at high interest rates. This tends to result in much lower prices. The first few years aren't fun, but interest rates decline, home values go up, and you re-fi once or twice. A couple decades later, your home is worth 5+ times what you paid, and your interest rate is low. Your rates go down, your values go up. You're good to go.

Scenario #2:
You're X/Y-Gen and bought at high sticker price and low interest rates. Your rates go up and your assessed value goes down. Of course, taxes don't go down. You're hosed.

Which scenario would YOU like?
Right now you have the opportunity to buy at low prices and finance with historically low interest rates. That is if you have a steady income that matches your house price level. If you can put down 20% you can get some pretty good deals right now, before house prices go back up. Now is a great time to buy, especially if you can get a fixed rate mortgage.
 
Low interest rates for 2 years is not good news to you ?? You must be nuts. We're used to interest rate game playing on a weekly basis, stability is key. Maybe you weren't around when they had 21% prime rates and 18% home mortgages. Interest rate fluctuations always drove home buyers out of the market. Low interest rates is a blessing, that's why the stock market climbed back up today. This certainly won't hurt housing either.
Artificially low interest rates for a 2 year period arent good and here is why:

First what Ben did today was basically say that he doesnt think the economy is going to get any better for at least 2 years. That is a bad sign.

Second, anyone that was considering buying on credit because rates were low now dont have to worry about rates going up for 2 years now and will likely delay purchaces until the last minute. Like thier A/C unit is dieing and should be replaced but it might make it til the end of summer. No point in replacing it til it flat out dies now cuz rates arent going anywhere right?

Third, Anyone relying on interest on bank accounts or bonds is getting screwed now. This was a way for the fed to force people out of cash possitions and into something with a better yield, even if that yield comes with much higher risk.

Forth, what outside entity in thier right mind is going to buy our bonds knowing that they will not be gaining any rate of return, especially with the risk of hyper inflation on the horizon. The way you attact people to less desirable bonds is through higher interest rates not lower ones. Id be highly surprized if China baught any more bonds for the next 2 years. Thats a bad thing.


And thats just what I can come up with off the top of my head. Im sure other unintended consequences will be surfacing as we move forward.
 
The US dollar has lost about 98% of it's value since 1913 (98 years ago). Ben only needs to make it last another two years until it is worth zero. Some may deride this, but the maths speaks for itself. Or do you really believe in the fiat ponzi scheme?
If people keep buying t-bills from Europe,Asia,and South America,the dollar will continue it's strengthening,it will continue to be a rush to liquidity and King Dollar,remember that when you buy gas in two weeks.

The rise in gold had nothing to do with inflation,it was a flight out of the currency markets,that's why silver was flat.

Liquidity=dollars,gold,t-bills

http://www.tulsagasprices.com/GasPriceSearch.aspx

Deflation,depression
 
So why are the gas prices relevant to this?

Maybe I dont get it but are we not looking at a shrinking or at least stagnant economy? If this is the case, supply will outpace demand and the prices go down. In some ways good or lower gas prices. In many many other ways bad.

V
 
So why are the gas prices relevant to this?

Maybe I dont get it but are we not looking at a shrinking or at least stagnant economy? If this is the case, supply will outpace demand and the prices go down. In some ways good or lower gas prices. In many many other ways bad.

V
Deflation......
Main streets on it's butt,Wall Street was pricing in a recovery and pushing up prices on commodities.
In what way are lower commodity prices "bad"?
 
Hey Crackshot... have you been in a thread that djwayne took a liking too before? This is the result:

LOL funny, but he doesnt bother me. I know some people just cant handle reality. Its hard to admit to yourself that the way of life that youre acustom to more than likely will be coming to an end. Still dont understand what hes doing on a survivalist site though considering the material we cover and the flexability needed to think like a survivalist. The idea is to prepair for any situation, not to deny deny deny.

I will be honest though, I really havent been preping for zombies.
 
Artificially low interest rates for a 2 year period arent good and here is why:

First what Ben did today was basically say that he doesnt think the economy is going to get any better for at least 2 years. That is a bad sign.

Second, anyone that was considering buying on credit because rates were low now dont have to worry about rates going up for 2 years now and will likely delay purchaces until the last minute. Like thier A/C unit is dieing and should be replaced but it might make it til the end of summer. No point in replacing it til it flat out dies now cuz rates arent going anywhere right?

Third, Anyone relying on interest on bank accounts or bonds is getting screwed now. This was a way for the fed to force people out of cash possitions and into something with a better yield, even if that yield comes with much higher risk.

Forth, what outside entity in thier right mind is going to buy our bonds knowing that they will not be gaining any rate of return, especially with the risk of hyper inflation on the horizon. The way you attact people to less desirable bonds is through higher interest rates not lower ones. Id be highly surprized if China baught any more bonds for the next 2 years. Thats a bad thing.


And thats just what I can come up with off the top of my head. Im sure other unintended consequences will be surfacing as we move forward.
So you are saying you want high interest rates ?? You're nuts.
 
I've read that to keep home values up for future sellers and buyers, the bankers and loan institutions of the foreclosed homes are bulldozing homes to the ground and maintaining empty lots on purpose. Less homes equal greater costs to the new home buyers when a shortage of homes hits the buying market one day in the future.

We'll probably see something similar happening to other commodities, too. Intentional destruction to create shortages and raise the prices when the market demand begins to increase. Fields of corn, wheat, and cotton won't be planted on purpose and oil refineries will be shut down creating gas shortages and higher fuel prices. Those that control the stock market's commodity section know how to manipulate it in their favor no matter the economic conditions. Kramer, of CNBC's Squawk Box, even bragged and joked about manipulating the stock market conditions once to make a profit. There is a video on YouTube showing it.
 
So you are saying you want high interest rates ?? You're nuts.
I dont want usery rates no, but the interest rate needs to float freely. All of this artificial manipulation in the market is just making the fall that much more painful. We have been at artificially the lowest rates on record for a couple years now and it hasnt helped.
 
Higher rates would cause deflation in an already tough market. Even with lower rates the stock market is tanking....this is real trouble now, because there's not much left the Fed's can do.
Hey youre getting it. Congratz.

Slightly higher rates would attract more outside buyers for government bonds meaning that they wouldnt have to monitize them and create more inflation. It would also mean that they might actually realize that with higher rates they actually need to cut the size of goverment a little to cover the added costs. And smaller government is the direction we need to be heading in.
 
Hey youre getting it. Congratz.

Slightly higher rates would attract more outside buyers for government bonds meaning that they wouldnt have to monitize them and create more inflation. It would also mean that they might actually realize that with higher rates they actually need to cut the size of goverment a little to cover the added costs. And smaller government is the direction we need to be heading in.
Too bad you're not getting it....higher rates would send us smack dab into a depression, which we may be heading into anyhow. Higher interest rates would not help. Careful for what you wish for, you just might get it.
 
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