Now what I wanna know is if this is part of the "economic boom" that Trump inherited from the democrats
Oh I wonder why. And its not because Trump saved 800 job with Carrier or IBM is bring 25,000 jobs to the market. Maybe, just maybe it's Obama's last hit on the American worker.You folks that wanna buy a house, car, or get a student loan might wanna take a good look look at this. Also you home owners that wanted to re-fi might wanna look into this.I say...............Audit the Feds....!Federal Reserve is expected to raise interest rates just before Trump is sworn inThe Federal Reserve is expected to raise interest rates for the first time in a year during a key policy meeting that ends Wednesday, the Associated Press reports.According to Politico, markets are on edge as they await the Fed’s outlook for the economy under President-elect Donald Trump, which is expected to see continued growth. But economists also expect to see higher levels of inflation, which would lead to even higher interest rates.READ MORE...........http://www.theblaze.com/news/2016/12/14/federal-reserve-is-expected-to-raise-interest-rates-just-before-trump-is-sworn-in/
Rates have been going up since the low in September/October.http://www.bankrate.com/mortgage.aspx?type=refinance&market=236&propertyvalue=300000&loan=240000&perc=20&prods=215,393,216,392&fico=740&points=Zero&cs=0&ic_id=home_smart-spending_mortgages_globalnavNow that optimism has returned - so have interest rates.
Obama and the Fed have kept them artificially low for too long. It is not a disaster that they rise if it is not drastic like we saw in the 70's.
Which has puzzled me - why is the FED in BED with the liberals!? If the economy takes another dip, they're sure to blame it on the Pubs... like the sun rising in the morning, "SEE!!! I told you, global warming - every morning!"
Obama and the Fed have kept them artificially low for too long. It is not a disaster that they rise if it is not drastic like we saw in the 70's.Adjusted font size.walks
When I ask this, I'm not asking about whether rates should be higher or lower, that's a different question, but when you say "artificially lower", what do you mean?
There is no reason for interest rates to be as low as they are based on our economy.
It is not booming, but if we can believe the government we do have some growth.
Also, the unemployment rate is very low, once again if you believe the government.
The only thing these low interest rates have done is to provide fuel for Wall Street investors.
Now, if one wants to say it is to keep the economy going one would have to admit the Obama economy is a disaster.
Anybody who has been on this planet for any length of time knows these rates are unbelievable. In 1981 the interest rate for a 30-year mortgage was over 18% and now it is around 3%. A few 1/4% increases should not hurt the economy if Trump can generate some increased growth in GDP. I trust that provides some insight for you.
I think the reason that is given is that higher rates would result in less consumption.I agree it's not booming as to whether I agree with the government, I think overall statistics mask real underlying trends. For example, if 99.99% of the money in the nation were controlled by 1 person, if that person got a 20% raise, the economy, measured as a whole might appear, on average (by dollars, not people) to have receved a raise. I think media needs to stop reporting by education level, race, and geography, and simply report by economic quintile. If the media reported this way, the average person might realize that 80% of the nation is no better off than it was 18 years ago and even worse, that 60% was actually worse off.That 60% spoke loud and clear to the Dems when they elected DT.Again, no I don't. The unemployment rates does not accurately reflect the quality of jobs that people have. If a person is capable of a job that pays $80,000 but can only find a job for $40,000, that person is underemployed and his/her potential productivity is being wasted, though there is no statistic that accounts for this fact.A few minutes searching the BLS stats and you can learn what you need to know, but of course the government doesn't report meaningful numbers because people are too apathetic to be bothered to take the time to understand them.If you are attacking Obama hoping I'll defend him and other dems, I won't. However, I can find just as many, perhaps even more problems with Republican proposals on the economy.I'll agree it's helped the financial economy immensely, but I'd argue that lowering the rent paid on borrowed money helps people on Main St. as well. The problem is that the gap between those at the top and those in the middle/bottom grows with the low rates we have now.But, can't we solve this problem through policy change? Can't we have low rates to help Main St. and prevent some of the financial shenanigans on Wall St? I mean, should companies be allowed to purchase their own stock to artificially inflate the stock price (as an example)?I think its helped keep things going and yes I admit it's a disaster.I'd argue that 18% under Volcker was more unbelievable than .5% under Bernanke/ Yellen simply because the "natural" rate of interest in our fiat economy is zero. At least today now that there's no gold standard. In a fiat economy, money isn't scarce as the Fed can supply all the liquidity the market needs. Anything above zero is artificial by definition. Now that doesn't mean that I think the rate should necessarily be zero, but if the reason for raising rates is to prevent the wealthy from leveraging virtually free money to invest (gamble), it seems that there are other ways to solve that problem. This way the weak private sector can have the lower rates it needs and the wealthy have proper regulation to prevent gambling with borrowed money.
It seems we agree for the most part. The question is what is a reasonable level for interest rates which are good for the most. I suggest we go back to the 1950's for a base line. We had a booming economy and the interest rate for a 30 year mortgage was around 5%-6%. This level does not impede borrowing and provides some comfort for those depending on interest income.