Fed hikes rates to highest since dot-com bubble. The central bank’s key overnight rate will rise to a range of 5.25% to 5.5%. That is higher than it has been in decades.
(www.washingtonexaminer.com)
🤑 MONEY COLLAPSE 💥
5.5 you say?
Nice catch
It's the only button they have. The claim is that raising interest rates will slow down the bonfire of an economy that they have created by typing too many zeros into their computers. It's a bit like making a bucket chain to do put out a raging fire though.
Oh and it will push many homeowners over the edge - the ones who went all out and now find themselves in hot water i.e. repayments too high.
Also, it will lower real estate prices, because there will be less demand due to the higher interest rates, which is attractive to Blackrock, who will buy up all the (cheap) properties whose previous owners find themselves upside down (i.e. there is no longer an upside, and the previous owners walk away).
How would a homeowner with a mortgage have higher payments unless they signed up for a flexible rate? Who, in their right mind, would do that?
I don't know about in US, but I've heard variable rates are extremely common in UK and other parts of the world. Most don't use the 30yr fixed that we do
New Zealand's central bank is at the forefront of this interest rate fiddling game - since the early nineties. I'd say that many WEF policies are trialed here. Each of the leaders of parties is a WEF graduate, BTW.
Most banks devolve to a flexible rate if the homeowner doesn't fix it. It takes a bit of paperwork and phone-calling to do so. Many people ignore that they should fix the rate, because they are too busy in their day-to-day life.
We fixed ours, but my son (builder) didn't and he suffered a massive hike - at first he was round our place every night for dinner (and a beer) as a result. We did warn him, but who listens to boomer parents? NVM. He is hanging in there by working cash-jobs on Saturdays now.
This is in New Zealand? The type of rate is made very clear at closing, by law, and after 08, I can't imagine signing up for flexible. Here, if you have a flexible rate, you would have to refinance with a fixed rate.
In New Zealand one signs up for a fixed rate for 1, 2, 5 or even 10 years. Then it devolves back to flexible unless fixed again.
The problem is that the rates are different, so the 10 yr fix is far more expensive than say, the 1 yr rate. Sometimes the flexi-rate falls below those fixed rates as well. So, it is a crap shoot to pick for how long to fix the rate for, and the perception is that one pays for the luxury of fixing.
We guessed 5 yrs for a rate that was more expensive than the flexi-rate. Six months later, the flexi-rate shot above that rate - so we guessed right. We read the tealeaves correctly, I guess.
On the other hand, my son went with the cheapest rate available at the time, which was the flexi-rate, and got screwed.
How hard is it to open a bank there, because I can guarantee US banks make lots of money doing fixed rates. We have points and ppi (mortgage insurance, I think), but all that can be negotiated. Credit rating and down payment are key to a decent deal.
Massive foreclosures, in a down market, isn't a good business strategy. Empty houses get sold at a loss and houses deteriorate fast when they stand empty.
We just went through the process of opening a bank account for one of our kids. One needs two forms of photo ID, say a passport and a driver's license, but there are some other forms that they'll take like a birth certificate or a community services card from the government.
If one does not have those two forms of photo ID, then, one also needs a JP to sign a document that one is who one is. Kind of silly, but there it is. Furthermore one needs a letter addressed to one's address to verify that address.
Of course, the bank's discretion comes into play regarding credit rating. So the average pede starting out cannot immediately request a mortgage.
Yup. Now when seeing homeless people it gives a different perspective.
When I left everything behind when I was 18 and moved across this country. I had to fight to get a bank account. My mom would used my SS numbers and her friends would too.
If a person doesn’t have a drive to get off the street due to ptsd and they lose all their records. In one sense they are free from the system but the system brainwashed us into looking at them as filth.
All while many of them are very smart, educated. Very sad state we are in around this place.
Oh yeah we are all racist now if we don’t bend the knee to Marxist ideology. In which we are going to see a huge boom of more homelessness.
When is enough?
We have credit rating companies and if you don't pay your bills, they keep track. Ironically, your rating is positively affected by having debt that you pay on time. A hefty savings account doesn't give you a good rating. It's all very counter intuitive, and when even modest homes cost a half million, few people can save enough.
There's six year financing for cars which cost more than my first house.
Put my newlywed nephew on the list. I warned him a couple months ago. He told me their banker said there was a good chance the rates could go down. 😒
I told him flat out, they can only go up and you better lock in to a fixed rate ASAP.
USA is famous for its 30 year fixes. Doesnt happen in other countries. Where I am you can get 10 year fix max but expect massive arrangement fee. Most people on variable rate.
I was advised to get a 30 year fixed, which I got on a jumbo at 3.5%. I am fortunate enuf that I could pay it off, but I make much more than the 3.5% leaving it invested. Add to that inflation and over the 30 years you beat the bank.
Millions of people in UK now facing 7% on mortgages which were 2% when they started them only a few years ago. May not sound a lot in percentage terms but means monthly payments doubled or tripled. Not sure what a jumbo is but I know a lot of people would kill for a 30 year fix at 3.5% 😀
Nobody with a head on their shoulders.
Zelensky MUST FEED!
This is the button you push to kill the offshore dollar market that's been funding the Globalist cabal. Yes we'll hurt, but well..it had to be this way because of what Bernanke and Yellen did.
Just think, if you are one of the LUCKY ones who still has a job and gets a nice raise or even a promotion. - after inflation (which DOES NOT include the price of gasoline, food, electricity or natural gas) you may just break even to what you made two years ago.
Another form of theft - raise rates and force the taxpayer to pay more to the Fed in interest on money stolen from the taxpayer.
take your money from your paycheck, then take the rest when you attempt you pay off your house. if that isn't holding you under water right below your nostrils then Biden's a good president.
let me guess, florida
I’m a Floridian. My property taxes just went up $400/mth.
Ludicrous.
this state is fucked
I know things in our house are falling apart. We are in AZ, our air conditioners went out and the earliest we can have them replaced is NEXT TUESDAY! Granted, I shouldn't complain because these air conditioners were installed new 11/2001. It would cost 6 grand just to run a test to find any leaks because of the coolant isn't used anymore, but our units would be grandfathered in! Ice machine stopped making ice (older fridge), parts on our cars are breaking (plastic parts that help the windows move up and down are drying out and snapping), etc I wish this movie would hurry up to get to the end. I am hot, tired and need a good night sleep.
Thank you so much for your prayers and kind words. I am very grateful we have technicians scheduled for Tuesday. I pray for others who aren't as fortunate and are suffering. Cool showers, iced water with electrolytes, cold, juicy produce, anything to keep everyone hydrated (including the stray cat my daughter has been feeding). I keep telling my husband, we both grew up in CA without air conditioning, now it is our responsibility to teach this life lesson to our children how to get through a rough patch with grace.
Thank you, I do feel God's blessings. I pray my children do because sometimes they act like spoiled brats.
Maybe go float in a cool bath?
I have been driving to Starbucks to get everyone drinks plus cups of ice. The Starbucks by our home have such great people working there. I do understand 100% why the desert doesn't come alive until after dark when it cools down and until dawn, or an hour after that. Then, it is time to find a cool spot to rest!
Yes, 6 grand to test the r22 (I think that is what it was called, not freon) to see where all the leaks. Said they would have to fill it up to test for leaks. It seems too high for me.
By design.
Stickey for our Yearly Quarterly US Dollar Bon-Fire! Pull up a chair, grab a stick, get comfortable, poke a hole in your Federal Reserve Bills and roast um up. Kek!
Like Pablo Escobar keeping his familia warm with US Hundred Dollar Bills as firewood nearing his life’s end. During the last arch of Narcos Season 2.
u/#disgonbgud
u/#bahaha
I want to hear Biden praise the success of the Inflation Reduction Act today, and CNN to bark, and clap like happy seal's in agreement.
Great.... I'm trying to sell my house :(
prolly better hang on to it until this thing blows over.
That is higher than it has been in decades.
Banks and hedge funds are screwed. They're going to be taking 100% haircuts on treasury bonds.
The last rate hike CAUSED the dot com collapse (although they say it's the other way around) and this one will be bigger.
Greenspan and Warren brought us here by design going back over 22 years.
Confusing why would 5.5 high ? I know it os higher than 3.5 but if compare to credit card 20-35% Thai is call high
I know right? We have been trying to get rid of our credit cards. Still have one for 2000 dollars to do.
I have $1k, but luckily mine is no interests for 6 months as long as I pay it off before that, only need to pay minimum payment
Did u try to transfer it and start “new”
No, we just concentrated on putting as much money as we could into several credit cards. At the moment though, with one more to go, we are instead, stacking silver, because we believe that that gold-backed currency thingie, rumoured by BRICS, is going to happen soon-ish - i.e. August. Gold will start gaining, and Silver in its wake. there are some other fundamentals, such as rapid inflation, that will put pressure on metals.
In any case, Cold Hard Silver, and cash for that matter, is harder to spend, once it is sitting in one's treasure tin. Also, it cannot be stolen by banks. One does have to stock up on lead as well, however, just to ward off physical thieves. But on the positive side, thieves tend to go for tech stuff, not crummy-looking tins. If one is intending to travel, one tends to hide that tin really well.
Since we started, Silver has tripled in price, and I don't see any way for it to come down, what with the industrial use of that metal. (Think of mobile phones and computers).
And, when we bought our house, we sold some silver to cover the lawyer's fees and some of the deposit. We walked into that office with bare feet and shitty clothes, and the lawyer was very surprised that we could just fork that cash over.
21months no interests debts transfer https://citicards.citi.com/usc/lpaca/citi/cards/diamondpreferred/external_dp1/index.html
This is in their interest, not mine. However, my interest is rising as they are crashing.
When does the pain stop?
Here is the thing. Interest rates were higher in the 80s and 90s and the economy for the most part in those two decades did fine with historically low inflation, sometimes deflation as we saw in the last half of the 90s.
So what is the issue? Its all the free money and deficit spending since September 11, 2001.
That's my story and I'm sticking to it.
Compare and contrast the bond markets over the past couple months. Look at what happened after Yellen went to China. This rate hike is downstream of Kissinger going to China.
Powell is at the very least a gray hat. Change my mind. You don't wait a year to be reconfirmed as chair pro tem if you're solidly on team Globalist. He had to fool Biden and the rest of them. This is going to hurt the WEF et al.
Give this a read. Then look up Tom Luongo. He's got a fascinating thesis on all of this.
good
Yeah, the bubble grows bigger until...