Interest rates hikes

VenomVeins

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do you think a bubble burst is likely in the next year?
No.

There will be another burst when the lenders really open the floodgates and let anyone with a mcdonalds paystub buy in.

We’re looking at a 3-5 year window at this point-essentially once the big ‘hit’ comes in the form of a massively ballooning mortage payment for tens of thousands of subprime mortgages is when we’ll see the multitude of defaults and a subsequent crash.

Of course, the lenders and bank dipshits will say ‘we cant let this happen again!’ And tighten things up for a few years......and then it will happen again. Wash, rinse, repeat.
 

tt335ci03cobra

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Subprime is going to be a much worse problem this time around if they let it rear it’s head as badly again.
 

lOOKnGO

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No.

There will be another burst when the lenders really open the floodgates and let anyone with a mcdonalds paystub buy in.

We’re looking at a 3-5 year window at this point-essentially once the big ‘hit’ comes in the form of a massively ballooning mortage payment for tens of thousands of subprime mortgages is when we’ll see the multitude of defaults and a subsequent crash.

Of course, the lenders and bank dipshits will say ‘we cant let this happen again!’ And tighten things up for a few years......and then it will happen again. Wash, rinse, repeat.

This! Great explanation! Interest only 2nds are also starting to mature, from the glory days. Interest rate hike along with added principal payment will surely drag some people under. It is a sick cycle.


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black4vcobra

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My mortgage is 3.375%. That was the best rate available when we built in early 2016. I'd hate to try building now.

This is as good as it gets for a 30 year. We refinanced in September of 2016 and reduced our rate to 3.5%. Great feeling to have it that low especially considering the house has gained close to 20% in value in the last 2 years.
 

03Sssnake

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not at my post...
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RDJ

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Thanks for sharing your opinion, so eloquently I might add. I don't know about info wars, as I have never visited. I'm like you, I know everything already. Member tt335cicobra clearly is well read. He as also anxious to share he thoughts. His brain synapses fire faster then he types sometimes, but his efforts to conversation are refreshing. Considering most younger just spout off robotic talking points, they hear on MSM.
funny you rag on someone saying info wars is crap .. yet you have never "visited". I HAVE visited and info wars is crap and given credence by people who wear tin hats.

Short bit, for the haters:
You fail. Try harder, I’d like to see you have a great free life. Honestly.
right. sure you do. you call anyone who disagrees with the shit you post failures and haters. yep that is the mark of someone that would "like to see you have a great free life" I have a great free life and I think your tin hat is a) couple of sized two small and b) leaking

Why the **** does it take you so many words to say nothing of substance? Your entire post can be summed up as, "if you don't agree with me, you're just uninformed". That's it. Nine ****ing words is all you needed.

By the way, all your garbage sources -like infowars - don't actually make you more informed. They pollute your mind with useless information and empower you to come up with these assinine conspiracy theories you've plastered all over this site. Pretty sure everybody here knows Soros, and his minions are sewing destruction. We didn't need you, infowars, or any other trash, click-bait news site to tell us.
THIS +65,000

Yes. You haven’t contributed anything about the fed. You critic, no value added though.Change name to garden snake
like what you have added is "value added". you spew so much conspiracy theory crap that no one can take anything you say serious.

Signals in the Dow today show investors still see great growth.
Fed is probably more than justified in their rate increases. When China rolls over, American gdp will be in position to grow at 7-8% for a few quarters and over 5-6% for at least 1-2 years. It’s better to be ahead of that game, with meaningful rates in place, even if that means only realizing three quarters of that gdp growth.
China is not going to roll, ever. IF they change is is going to be a long slow drive to the other side.

This seems appropriate to place here considering the topic.

If I'm not mistaken, this is a big part of what led us to the bubble burst in 2008/2009. Given the interest rate increases and the current slide on the markets, it would appear we may be headed there again.
Apparently, we learned nothing the last time.
Thousands line up for zero-down-payment, subprime mortgages

you are partially mistaken. what led to the bubble burst was banks offering teaser interest rates to people who otherwise couldn't afford loans with no down payment. then those people jumped at the chance of owning a house they couldn't afford and signed their paperwork without doing their due diligence. they did not consider what would happen if that pay raise didn't come in time for the interest rate rise that was clearly stated on the paperwork, or what would happen if they lost their job, got a divorce, or had a long term illness. Many of them also failed to take into consideration what it would do to their budget and didn't take into account the things a homeowner has to pay for that a renter doesn't. they just signed. and lost their shirt when that pay raise didn't come or what came was not enough to cover the rise in their house payment. THAT is what the issue was.

This program looks like it probably would work if they stick to the plan outlined in the article. it looks like the rates are fixed, people are being educated as to what they need to do in order to avoid the pitfalls. it would be interesting to take the class and see just how detailed it is.

My interest rates are locked, but the consolidation loans im in the works towards getting are getting less and less impressive.
in my experience taking a consolidation loan is never a good idea and is usually done by people who have over extended themselves.

I'm definitely going to do that if it doesn't sell soon!
IF you can afford the payment should your renter stop paying rent OR you are unable to find a renter, you should do it. hopefully the market where you are will support a rent a little above your payment. if it does sock anything over the payment into a savings account to use for repairs on the house and to clean it up between renters. Also invest in hiring a rental manager. it normally costs somewhere between 6 and 10% of the rent and worth every dime. ask me how I know
 

earico

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funny you rag on someone saying info wars is crap .. yet you have never "visited". I HAVE visited and info wars is crap and given credence by people who wear tin hats.

I can't stand his ****ing voice. Makes my skin crawl. I get the same effect listening to a used car salesman.
 

tt335ci03cobra

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@RDJ

Still hope you have and continue having a great life, not in the slightest peeved or agreeved that you disagree with my opinions. Go have a good beer and steak and enjoy this country, it’s freedoms aren’t a limited condition, and Americans can have different views and still wish each other well.

Also, yes, the sba consolidation loan is because we got cornered into letting over 500k in cash on hand and small assets slip/sell away to a fumbling business remodel. 6 months longer than quoted, loopholes in the thin contracts drafted cover their asses, etc. Good news is business is up and into all time high. We’ve grown to about double the revenue of 2015, and are on point to leapfrog this year with future improvements underway.

I don’t hate the game, I just have learned to watch out for the players. Should have had an ass to the wall nailing contract for shortfalls. Lesson learned. I don’t have any desire to go vandalize work trucks or don a ski mask and beat them up with a bike like like antifa thugs would. Business is business, those guys won’t get future business or referrals from us.

Back to rate hikes, the fed should look to use rates at about 2/3rds the speed in which they are. The country can handle some inflation but it isn’t in a strong position to handle more stagnation or slow growth. We need lots of growth to start getting ahead of our national debt.
 

lOOKnGO

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funny you rag on someone saying info wars is crap ..

Always quick to show your ass! What sentence did I type that would indicate I was ragging on someone. They would have to be a very thin skinned Bitch lick yourself!


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tt335ci03cobra

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I can't stand his ****ing voice. Makes my skin crawl. I get the same effect listening to a used car salesman.

I get that feeling from his voice to a lesser extent as well. I get it a ton when I listen to NPR... I can’t stand the slow..nasally..pretentious..certainty.. of NPR.

Another couple people with voices for miming imo are Elizebeth Warren, Kamala Harris and Nancy Pelosi...
 
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tt335ci03cobra

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I think we can all agree 100% that president Trump has the best voice for politics and cordial discussions
 

lOOKnGO

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LOL you can't even quote properly and broke about 5 SVT rules in the process. you fail so hard it's pretty pathetic

Did it all for you, so you could have something to critique! Surprised you didn't mention punctuation. You still didn't answer my question.


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tt335ci03cobra

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Back to interest rates it’s looking like another quarter point in December.

They need to slow that crap down. If they kill the housing market, rent will go up, not down. The country is better off with inflation than recession right now
 
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Blk04L

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FWIW Ron Paul's opinion:
Ron Paul warns economy under Trump is 'not sound’
"But the economy on the surface is good, but it’s not sound, it’s not lasting, it’s based on debt and the payment will come due soon.”

Paul cited rising interest rates and what he described as a housing bubble as negative factors for the economy.

“I have a feeling we might not make it to the end of the year before you see the markets sending a much stronger signal,” the former congressman said.

He said this will eventually lead up to a “big bust,” saying it’s not a matter of if there will be a massive correction but rather a matter of when.

"Right now we are at the tail end of one of the biggest, massive monetary inflation in history of mankind,” said Paul, a critic of the Federal Reserve who has called for a return to the gold standard.
 

tt335ci03cobra

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People are trying to find support in bitcoin and block chains. It might be there, or it might tank.

Some say the dollar will tank and block chains will sky rocket

I’m not holding my breath
 

DaleM

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FlahDah man.
FWIW Ron Paul's opinion:
Ron Paul warns economy under Trump is 'not sound’
"But the economy on the surface is good, but it’s not sound, it’s not lasting, it’s based on debt and the payment will come due soon.”

Paul cited rising interest rates and what he described as a housing bubble as negative factors for the economy.

“I have a feeling we might not make it to the end of the year before you see the markets sending a much stronger signal,” the former congressman said.

He said this will eventually lead up to a “big bust,” saying it’s not a matter of if there will be a massive correction but rather a matter of when.

"Right now we are at the tail end of one of the biggest, massive monetary inflation in history of mankind,” said Paul, a critic of the Federal Reserve who has called for a return to the gold standard.
Ron has been spewing this crap for 40 years. It is like the rapture. Everyone is still here.

OK Bozos, stop clowning around.
 

Geno-04

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I bought my first house in January 2013, my rate was 3.0. Bought my second in January 2018 at 3.2.....if I would have bought in 2017 the rates were in the mid 2% range. I think the rates are gonna keep rising until it’s 2007-2008 all over again.
 

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