Feds drop rate...
- Thread starter SilentStalkr
- Start date
Big fucking deal. Doesn’t help the common man.
YOure correct but the billionaires will make a killing.
I just want the six figures I lost in my 401k back
This is retarded.
Virus bullshit aside, if you look at the large picture you'll realize how fucking dumb this is.
So we cut the rate to 0%. Why?
- They want to slow the slide in the stock market
- They don't want an instant housing recession; not sure about your AO but here and everywhere else I know they are building cookie cutter houses in bulk at 2x what they are actually worth
- They want rates to drop on consumer loans/credit cards so even during the 'panic' people keep buying shit because its cheap money
So here is where the retardation comes in.
- The stock market in 2016 had an average of 19.5k; since then we've been over 25k. A correction was coming one way or the other. Did everyone think we were just going to go to 30, or 35k or something? This will stop nothing other than people going on credit/calls to buy stocks on sale. This helps literally no one.
- The housing market was well on its way to hitting a recession sooner than later. There is a giant surplus of homes and when the FED dropped the rate a while back it was due to market indicators leading to an eventual housing recession (things like car repossession rates, etc). Regardless, we're what, 10 days into this bullshit and the answer is to drop the rate to 0%? You're maybe knocking a few fence sitters off, thats it. The flip side is, when the rate goes back up, it is guaranteed to induce a recession and basically stop the house building/housing market. It's happening one way or another. So again, this helps noone.
- Consumer debt default ratios were one of the factors as to why the FED dropped the rate a while back initially. Cheap credit will only make people who shouldn't/otherwise wouldn't have take credit. Very little net positive for the economy will ensure, but the default ratio will be guaranteed to trend upwards over the next 12 months. Easing bank requirments on lending ensures this 120%.
- Inflation will go over 10% easily if this retarded shit goes on for more than a very short time.
In short, this 0% rate, is a stupid feel good attempt brought on by a overreaction of stupid people that has now taken something that we could wait out and instead, has guaranteed us a recession.
Virus bullshit aside, if you look at the large picture you'll realize how fucking dumb this is.
So we cut the rate to 0%. Why?
- They want to slow the slide in the stock market
- They don't want an instant housing recession; not sure about your AO but here and everywhere else I know they are building cookie cutter houses in bulk at 2x what they are actually worth
- They want rates to drop on consumer loans/credit cards so even during the 'panic' people keep buying shit because its cheap money
So here is where the retardation comes in.
- The stock market in 2016 had an average of 19.5k; since then we've been over 25k. A correction was coming one way or the other. Did everyone think we were just going to go to 30, or 35k or something? This will stop nothing other than people going on credit/calls to buy stocks on sale. This helps literally no one.
- The housing market was well on its way to hitting a recession sooner than later. There is a giant surplus of homes and when the FED dropped the rate a while back it was due to market indicators leading to an eventual housing recession (things like car repossession rates, etc). Regardless, we're what, 10 days into this bullshit and the answer is to drop the rate to 0%? You're maybe knocking a few fence sitters off, thats it. The flip side is, when the rate goes back up, it is guaranteed to induce a recession and basically stop the house building/housing market. It's happening one way or another. So again, this helps noone.
- Consumer debt default ratios were one of the factors as to why the FED dropped the rate a while back initially. Cheap credit will only make people who shouldn't/otherwise wouldn't have take credit. Very little net positive for the economy will ensure, but the default ratio will be guaranteed to trend upwards over the next 12 months. Easing bank requirments on lending ensures this 120%.
- Inflation will go over 10% easily if this retarded shit goes on for more than a very short time.
In short, this 0% rate, is a stupid feel good attempt brought on by a overreaction of stupid people that has now taken something that we could wait out and instead, has guaranteed us a recession.
I'm pissed because that means all my "safe" investments now give nothing but a negative (by inflation standards) rate of returns just so some big money gamblers on wall street can make more profits or have less losses on the backs of the taxpayers.
I'm sure I'm not the only one in the country that would be happy to see a lot of financial houses take it in the shorts after crowing about how much better than the rest of us they are.
I'm sure I'm not the only one in the country that would be happy to see a lot of financial houses take it in the shorts after crowing about how much better than the rest of us they are.
Wow..I never realized that we had so many economy experts on SH who know so much about the national federal reserve banking system. Impressive! 
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You know what’s jacked up? I have a handful of people that believe Trump has done all this to beat them at their own game. I’m all for sticking it to the man, but I don’t see this as doing us any favors. I see this as someone about to make some serious money at our expense. It’s a big gamble and I think they are giving dude way too damn much credit. If he could pull this off then he would be the genius of geniuses that ever lived. Not to mention if he could pull that off then how come we can’t get some basic pro2A laws in place, have Mexico build the border wall, fix the healthcare and so on. Those should be easy compared to this.
Well Mexico announced they want to shut the border down to keep America from infecting Mexico with corona virus... I'd say that's genius level win.
Trump was never actually all that pro 2A, his son was, but for him, I don't think he actually cares about it as much, he just knows his base cares about it.
Fix the healthcare was Obama's thing, Trump at least pulled the annoying dick of fines for not supporting super rich private corporations who want ever increasing donations, out of the backside of hard working Americans.
Guys, I like Trump but there is no fucking way he is this damn intelligent. I’m getting word that this is all encompassing to take back power, rid the world of some rats and so on. I’m sorry I just don’t believe this is a 4D chess move and even if it is, that’s some big gambling at our expense here.
Wow..I never realized that we had so many economy experts on SH who know so much about the national federal reserve banking system. Impressive!
Well, other than being able to actually shoot a handgun, some of us also have 2 finance degrees.
How far down into the blue are the buy orders stacking up? That'll tell you a lot of where Monday will bottom out at.
This week looks to be a roller coaster. Dump on Monday, many will buy shit on sale Tuesday, a bit more dumping on Wednesday, Thurs/Fri mixed bag and we'll end up close to where we started.
They needed to wait before dropping rates. If the market falls it falls, it was going to anyway. Overreaction of this virus is being pedaled by the media. The media did shit for swine flu but this is Trump so we have to take him down. The Dims wanted an economic collapse and now they’ll have one.
I’ll be going into medical facilities 4 days a week for the next month. I’m not worried about the beer flu. We’re pretty sure my daughter had it the first week of February before the hysteria and testing. I’m still here and healthy.
I’ll be going into medical facilities 4 days a week for the next month. I’m not worried about the beer flu. We’re pretty sure my daughter had it the first week of February before the hysteria and testing. I’m still here and healthy.
my house is on the market and new one will be finished in July. I have a feeling I am going to get screwed and will be losing my deposit on the new house... BUT if that happens I will refi my current house and just plan to stay here a few more years and deal with the suck. Guessing I can save about 300 bucks a month by eliminating my $185 PMI and going from a 4.25 down to a 3.25 or there abouts.
As for the fed dropping the rate, if they had done nothing the market would still be tanking and they would be looked at like "why the fuck didnt you do anything"... They are in a "damned if you do, damned if you dont" scenario.
What if I told you the fed is the problem to begin with?
you would be preaching to the choir... im well aware...
They should have let the shit really hit the fan in 2008 and we might not be in this situation right now.
No bail outs, no QE, etc...
So negative rates on the horizon? This rate cut won't stop the market from falling, and now the Fed has blown their wad. As for Trump, his achilles heel has always been the economy, and too many people equate the stock market with the health of the economy.
Or maybe people see it for what it is, and wont blame trump, but will blame the dems/media for the hysteria.
Yep, the wife and I are about to do the same thing and we only have less than 9 years left. Mac
Are we talking about the same people that look to government and media to tell them what to do and how to do it?! Good luck with that..
By your line of reasoning, i shouldnt have gone out and voted for trump last time.
I just did 2.5. Haven’t signed yet so maybe it will drop some more.
Damn. Where you guys finding these rates? I haven’t seen any lenders around here offering stuff that low, yet!
Rates likely won’t go lower from this move. 100BP cut to zero is nuts but not unexpected. The 10year opened down 33% , but banks wont go much lower do to inflation and risk. We likely see them tighten lending standards if Anything.
The market was only open for 15 minutes tonight before it was limit down - 5% ( most they will allow it to fall before RTH tmrw ) . The market suffered a massive credit shock last week with no bid for two days in certain bonds, rumors are swirling The largest name on the street needing an emergency bail out last week.
Last thing I would be doing now is making any long term financial decisions, houses will likely be much cheaper sooner than latter. Considering 70% of folks don’t have 500$ for an emergency we will likely see another housing crisis and multiple businesses closing without notice.
The market was only open for 15 minutes tonight before it was limit down - 5% ( most they will allow it to fall before RTH tmrw ) . The market suffered a massive credit shock last week with no bid for two days in certain bonds, rumors are swirling The largest name on the street needing an emergency bail out last week.
Last thing I would be doing now is making any long term financial decisions, houses will likely be much cheaper sooner than latter. Considering 70% of folks don’t have 500$ for an emergency we will likely see another housing crisis and multiple businesses closing without notice.
I got 2.9 on Monday and 3.25 on Wednesday. I suspect they will be lower this upcoming week.
I personally don’t think it has bottomed out yet. Especially with how long the COVID 19 scare could drag on
Research and do what makes you feel comfortable. History says the market will recover.
The black swan says get fucked.
So for us (me) that have 0 knowledge of how all this stuff works.
I financed my home 8 years ago at 4.25% with a VA loan. Is it wise to try and refinance for lower right now?
I financed my home 8 years ago at 4.25% with a VA loan. Is it wise to try and refinance for lower right now?
Get a quote. Compare the cost of the refi with the savings. Depending on your situation the payback period could be as low as a few months, and save you a ton.
What I found interesting that no one is talking about is the fed at the same time lowered the reserve ratio for banks to zero. This effectively (theoretical) removes all ceilings on monitory creation in the financial system. The monetary supply could expand infinitely if enough loans were made (infinite lending is now possible). The baking industry, and the controls around reserve ratio are what account for the lions share of money, not what the fed decides to print. This will be interesting, just my thoughts.
Absolutely! I’m looking at refinancing myself. I can do a 15 year for 2.9% right now which would cut my term in half as we are currently on a 30 but I think it’s going to go a bit lower. This will put me on a 15 year for effectively $100 more a month. If it drops to 2.5% or lower you’d be crazy not to. The trick is going to be monitoring it and getting a rate locked in before they go back up. The feds cutting rates have no effected long term rates tho, yet. Generally short term loans like ARM loans and Helocs are lowered first and if this situation goes long enough long term will follow but it’s not as immediate as the others.
Historically 4.25% is a great rate.
Talk to someone that lived in the age when money had value and typical rates would be about 7% and bad times had rates approaching 19%.
When making your consideration take into account costs like your house inspection ($300-$400) and whether getting your new rate will require points or closing costs.
I have never done a refi to lower the cost I pay each month.
I refi with the idea I can lower the time of the note.
I have gone from 30 to 25 to 20 to 15 years the last time I did a refi.
Im trying to do it again now and hoping to get something less than 10 years.
I always expect to end up paying more per month and will add principal if I can.
My refis have always been no points/no closing so its sort of a no brainer.
The last refi was "A LOT" more stringent regards the paper work. Post 2008 the vetting of your financials tightened up. Not a big deal, just a lot of copying of financial statements.
The icing on the cake with my refis is that they coincidentally seem to occur with the ending of a rifle build. My reward I have taken is to use the skipped payment between ending/starting a mortgage is to use it to pay for a rifle build. Prudence says use that payment to pay down principal but hey Im human.
I think you should be able to go a point or more lower if your credit is good.
Dont consider the reward as being able to pay less each month consider the reward being owning your house in half the time you thought you would.
I'm supposed to go get myself into debt in order to take advantage of these record low rates, right?
Sad, but that is the crack the Fed is asking you to smoke.
Our govt has a spending problem and I guess misery loves company.
Here is the rate chart from (03/12/2020) a local bank. Waiting to see what they look like this week.
We are still a consumer based economy, so you are needed to keep spending. This is why our Economy has taken a big shit, places close and people can’t buy cheap Chinese stuff.I'm supposed to go get myself into debt in order to take advantage of these record low rates, right?
