Comments on: The Fed's Next Move: Interest Rate Cut

By: NIck

NIck — Thu, 16 Oct 2008 14:41:26 +0000

Headline from today:30-year mortgage at 8-week high
Biggest weekly jump in 21 years sends benchmark loan to 6.46%
Dollar is up,only because it’s the only haven at the moment.I expect another Fed rate cut before months end.
sigh….

By: NIck

NIck — Tue, 14 Oct 2008 13:09:50 +0000

10 year Treasury at 4%,as of today.

By: NIck

NIck — Mon, 13 Oct 2008 12:50:09 +0000

Less than 1 week after the rate cut and look at the mortgage rates,especially ARMs.Dollar going down,15,30,and ARM mortgages going UP.1 year ARM went from 5.92 last month,to 7.32 as of Oct 13th.

By: M. T.

M. T. — Wed, 08 Oct 2008 20:34:57 +0000

Demand for fuel is less because China doesn’t demand on it any more. After Olympic which made china produced so much works and products is over……. That is why fuel no longer in demand as much as last 2years, in addition with global financial crisis…people tend to cut down expense.
When houses price go up to high, with no increase in salaries… who can afford to buy…. People need food to eat but can stay in same house to pay mortgage and heat together…. That leads to houses surplus inventories..
Cutting rate maybe not a good solution, but Gas should go down more to produce more jobs to stimulate economy.

By: NIck

NIck — Wed, 08 Oct 2008 15:40:30 +0000

Gloria,
I think California started lending mortgages for 50 years,back in 2006.50 years of servitude doesn’t seem to help matters.Back during the depression,home mortgage terms were typically 3-5 years.Of course,you could buy a home from Sears/Roebuck back then too.
BTW,look at the dollar and 10 year treasury,after the rate cut.Dollar worth less,home mortgage interest rates going up.

By: Gloria

Gloria — Wed, 08 Oct 2008 15:02:03 +0000

Re; the housing/mortgage market….has anyone thought, I know no one has discussed any prospect, of extending the mortagage options from 30-50-100 years? That would help the housing industry; ability to refinance at reduced costs?

By: K. Ross

K. Ross — Wed, 08 Oct 2008 14:46:44 +0000

Genius it is! I am one of those “Joe six packs”. I don’t have a PhD in Economics but I paid attention to some of the best minds in economics, used my memory for all it’s worth, and pulled some lessons from history. We honestly could get more done with monkeys at the switch. An old friend of mine said, “Common Sense, Integrity, and Good Judgment are commodities in short supply”. This has never been closer to the truth than today. Rate cuts are futile, tax cuts are necessary. Congress could care less, and meanwhile the oil producing nations are laughing all the way to the banks. Our banks!

By: NIck

NIck — Wed, 08 Oct 2008 13:13:36 +0000

How’s that rate cut going this morning? Cut .50% and DOW futures down -180.Pure genius.

By: bruce

bruce — Wed, 08 Oct 2008 10:36:59 +0000

If an interest rate cut of 1% is going to help, why not a 2% cut? That’s right take it to zero and start running the mint’s printing press’s around the clock. By the way when did Mr Mugabe take over the Fed?

By: JD

JD — Tue, 07 Oct 2008 18:29:34 +0000

Keynesian interventionism at its finest. Even though Bernanke claims to be a monetarist, I have my doubts. We need to raise interest rates, stop the bailouts, and allow the contraction to run its course. Sure, people will lose jobs (mine included as I work in an industry dependent on people getting cheap car loans…), credit will sieze up. But with higher interest rates, saving becomes attractive again and the need for credit expansion becomes less. Until equilibrium between short term monetary value and long term return is reached, the credit woes will continue. Injecting billions more fiat paper into the system will only exacerbate the problem. Im sure Mises is sitting in his grave somewhere saying ‘I told you so…’