Every time I think that guy can’t say something dumber he outdoes himself.
@s0me0nesmind1 - all I can say is wow. You really can’t figure out what inflation has to do with a loan whose terms cover a 30 year period?
Every time I think that guy can’t say something dumber he outdoes himself.
Every time I think that guy can’t say something dumber he outdoes himself.
@s0me0nesmind1 - all I can say is wow. You really can’t figure out what inflation has to do with a loan whose terms cover a 30 year period?
Exactly. The problem with being reactionary is that it causes people to have no memory of the past, and no vision for the future, and so they end up believing that the present state is forever. Which leads them to being highly susceptible to grifters and con artists.
Case in point: the economic crisis of 2008, of which the housing bust was a part, was global in scale and in fact larger and more devastating than the economic crisis of 2020. And Hannity did tell people to stop making their mortgage payments because "the housing market would never recover, not in 20 years," while Beck did tell people to buy gold because the dollar was going to collapse. And they both made those astonishingly inaccurate predictions because they were paid handsomely to do (IIRC: Hannity made like a billion dollars buying up the homes he told his viewers to let go to foreclosure... and they still listen to him even after he financially ruined them!)
But back to the topic at hand: suppose high inflation is real and here to stay. And yet right now you can get a 30 year fixed mortgage for 2.5%. It shouldn't take a degree in finance to figure out how to make money in such an environment. And yet all the conservatives, the very same people who love to brag ceaselessly about their economic prowess, are trying to tell us that would be a disaster, just because Hannity told them so.
Every time I think that guy can’t say something dumber he outdoes himself.
@s0me0nesmind1 - all I can say is wow. You really can’t figure out what inflation has to do with a loan whose terms cover a 30 year period?
But back to the topic at hand: suppose high inflation is real and here to stay. And yet right now you can get a 30 year fixed mortgage for 2.5%.
There is a general tendency for interest rates and the rate of inflation to have an inverse relationship. In general, when interest rates are low, the economy grows, and inflation increases.
He just demonstrated that he doesn't have a clue how interest rates and inflation are directly connected to each other (basic economics 101). He just did the equivalent of running into a crowded room, dropping his pants and yelling "look how small my dick is", except we are talking about his intellect here, not his dick size.
The topic of conversation is inflation.
Mortgage interest rates - especially those that are backed by a US Government that is lending money to banks with little or no interest has zero bearing on the topic of inflation. For inflation matters - the point being is regardless of getting a low mortgage rate - when your home is overvalued by $200k+ it doesn't really matter - paying 2.5% on $500k vs. 3.5% on $300k isn't exactly "WINNING!"
I'm sorry you're too retarded to understand these basic concepts.
No shit sherlock where did I ever say otherwise? The answer is that I didn't - and the topic is on inflation. The point was that Vic is a complete moron who said:
But apparently I have to spoon feed you like incessant children. Christ, how many times did you guys fall on your head in life?
What Is the Relationship Between Inflation and Interest Rates?
Inflation and interest rates are linked, but the relationship isn’t always straightforward.www.investopedia.com
OH SNAP. You mean to tell me that LOW interest rates - which is what you're bragging about in a thread where your trying to disprove that inflation is happening has an INVERSE RELATIONSHIP generally? OH wow, well that would mean... if you're bragging about low interest rates.... then you're proving my point that inflation is happening. DEEEEEEEEEERP lol.
lol what was that you were saying while smashing your own face in with a stupid post showing your retardation?
In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend. This causes the economy to grow and inflation to increase.
The opposite holds true for rising interest rates. As interest rates are increased, consumers tend to save because returns from savings are higher. With less disposable income being spent, the economy slows and inflation decreases.
Lol what does mortgage interest rates have to do with inflation?
You're still talking about 300k homes that are now 500k.
Holly shit dude! Nobody is arguing that inflation is not happening... The only argument is that the inflation is temporary.
Once again you just linked an article without reading it or fully understanding it:
from your article:
Here is what you said in your post:
The quote from your own articles shows just how fucking stupid you are, because you can't even gasp the stupidity in your own comment. Which leads me to believe you didn't read it. But rather than stepping back and taking some time to comprehend what is right in front of your face, you jumped head first into stupidity trying to throw out insults that are a 100% reflections on yourself and nobody else.
Keep doubling down, or is this tripling down on your stupidity? Are you not the one who asked a specific question about what does mortgage interest rates have to do with inflation? Was this not you?lol went right over your head. Again, I'm not making the argument about mortgage interest rates - BUT SINCE Vic did.... it falls perfectly in line with my argument that inflation is increasing. Nice try on distorting things.
It doesn't matter if it's mortgage interest rates, personal loan interest rates, credit card interest rates, etc, all interest rates are connected to inflation.Lol what does mortgage interest rates have to do with inflation?
You're still talking about 300k homes that are now 500k.
Exactly, haha. Mortgages are essentially banks saying ‘this is what we think inflation will be going forward’.He just demonstrated that he doesn't have a clue how interest rates and inflation are directly connected to each other. I mean he just did the equivalent of running into a crowded room, dropping his pants and yelling "look how small my dick is".
lol - Vic is right, we can just stand back and watch you humiliate yourself.The topic of conversation is inflation.
Mortgage interest rates - especially those that are backed by a US Government that is lending money to banks with little or no interest has zero bearing on the topic of inflation. For inflation matters - the point being is regardless of getting a low mortgage rate - when your home is overvalued by $200k+ it doesn't really matter - paying 2.5% on $500k vs. 3.5% on $300k isn't exactly "WINNING!"
I'm sorry you're too retarded to understand these basic concepts.
No shit sherlock where did I ever say otherwise? The answer is that I didn't - and the topic is on inflation. The point was that Vic is a complete moron who said:
But apparently I have to spoon feed you like incessant children. Christ, how many times did you guys fall on your head in life?
What Is the Relationship Between Inflation and Interest Rates?
Inflation and interest rates are linked, but the relationship isn’t always straightforward.www.investopedia.com
OH SNAP. You mean to tell me that LOW interest rates - which is what you're bragging about in a thread where your trying to disprove that inflation is happening has an INVERSE RELATIONSHIP generally? OH wow, well that would mean... if you're bragging about low interest rates.... then you're proving my point that inflation is happening. DEEEEEEEEEERP lol.
lol what was that you were saying while smashing your own face in with a stupid post showing your retardation?
Exactly. All interest rates are related to inflation and out of it all mortgages are particularly heavily related to inflation because of the long time period.Keep doubling down, or is this tripling down on your stupidity? Are you not the one who asked a specific question about what does mortgage interest rates have to do with inflation? Was this not you? It doesn't matter if it's mortgage interest rates, loan interest rates, etc, all interest rates are connected to inflation.
Talk about distorting things.. holly shit dude! Does the stupidity and self directed insults ever stop with you? I mean by all means continue on insulting yourself and doubling down by giving direct examples if that is what you want to do.
Exactly. The best hedge against inflation is highly leveraged asset purchases with low interest rate loans. If mortgage rates are low this indicates banks anticipate low inflation in the long term. If you think the banks are betting wrong then there is a tremendous opportunity here to take them for a ride.I don't like giving out genuine financial advice just to prove a point to some fool on the internet, but wtf here goes.
Suppose, from the example I brought up much earlier in this thread, that gas prices really were heading to $8/gal in a year. If I genuinely thought that to be true, I would go all-in on gas futures. Because if anyone were certain they could make a 300% ROI within 12 months, then that's exactly what they should do!
Similarly, if inflation were here to stay, that would mean that $500k house at 2.5% would be an amazing deal. A you'll-hate-yourself-for-missing-it deal. And the reason for that is precisely because you could have bought it a couple years ago for $300k at 3.5%, and you already missed that deal. We're supposedly in permanently high inflation, right? Which then means that $300k price is never coming back (cause that would be the opposite of inflation) and the only real investment concern is rising interest rates. IOW, not buying that house now for $500k at 2.5% means buying it for $700k and 5.5% later.
Even moreso, if the rate of inflation continues to be at or greater than that 2.5%, then that would mean you could have borrowed that $500k (less down, etc) for free.
You all are welcome BTW.
The topic of conversation is inflation.
Mortgage interest rates - especially those that are backed by a US Government that is lending money to banks with little or no interest has zero bearing on the topic of inflation. For inflation matters - the point being is regardless of getting a low mortgage rate - when your home is overvalued by $200k+ it doesn't really matter - paying 2.5% on $500k vs. 3.5% on $300k isn't exactly "WINNING!"
I'm sorry you're too retarded to understand these basic concepts.
No shit sherlock where did I ever say otherwise? The answer is that I didn't - and the topic is on inflation. The point was that Vic is a complete moron who said:
But apparently I have to spoon feed you like incessant children. Christ, how many times did you guys fall on your head in life?
What Is the Relationship Between Inflation and Interest Rates?
Inflation and interest rates are linked, but the relationship isn’t always straightforward.www.investopedia.com
OH SNAP. You mean to tell me that LOW interest rates - which is what you're bragging about in a thread where your trying to disprove that inflation is happening has an INVERSE RELATIONSHIP generally? OH wow, well that would mean... if you're bragging about low interest rates.... then you're proving my point that inflation is happening. DEEEEEEEEEERP lol.
lol what was that you were saying while smashing your own face in with a stupid post showing your retardation?
lol went right over your head. Again, I'm not making the argument about mortgage interest rates - BUT SINCE Vic did.... it falls perfectly in line with my argument that inflation is increasing. Nice try on distorting things.
Who agrees we should rename this thread to:
No, raising interest rates worked. Biden and the Fed should have started raising them much earlier, instead of stubbornly claiming that the inflation was "temporary". The Wharton Institute estimated that the "inflation reduction act" would have no immediate effect on inflation, and only a 0.1 % reduction long term.This aged well.
Stocks rise as inflation levels slow to the lowest since early 2021
Stocks rise after inflation report, S&P 500 and Nasdaq hit fresh 13-month highs: Live updates
The Dow Jones Industrial Average added 145 points as the latest inflation report showed further signs of easing price pressures.www.cnbc.com
The Inflation Reduction Act worked—and as usual Democrats are missing opportunities to gloat about it and remind everyone who tried to kill it.
Of course Republican reps and Senators will tout this as “their achievement”, never mind efforts to stall it, kill it, defund it, or strip things like insulin price caps and negotiated drug prices out of it.
Not sure if you are sarcastic or not. But anyway, a monthly rate of 4% being the low for 2 years, is actually not a "soft landing" but a scathing indictment of the horrible rate of inflation we have been subjected to for those 2 years. Biden can tout the low unemployment rate all he wants, but bottom line, people are still not able to cover the costs of everyday living in a lot of cases, even with a professional type job. Here is the Twin Cities, a decent 2 bedroom apt is close 2000 per month. My grandson has a college degree, a job with Hennepin county, but is living with us because he makes only about 50k per year. Even if he only got a one bedroom, that is about 1600/month, or 40% of his PRE-TAX, yes, PRE TAX, income. Buy a house and have kids, seems totally out of the question. That is why it simply doesnt resonate when Biden says how great the economy is. It is not all, or maybe even mostly Biden's fault, but it just makes him seem totally out of touch when he says how great the economy is. Of course this is the problem with the Dems these day, and partly why Trumps rhetoric inspires such devotion in his base. If you are not one of the select politically popular groups, the dems have pretty much forgotten about you, except to take you tax money and redistribute it to someone else.Soft Landing? Mission Accomplished?
High tax rates on the uber wealthy. In 1944 the top tax rate was 94% on incomes over $400k, which is now something like $10M todayCompare your grandson’s public sector salary with the equivalent private sector job. Then come back and bitch about paying your taxes some more.
There is no government cure for greed in America—neither Dems or GOP can figure that one out.
You should have stopped when you were ahead, that the Inflation Reduction Act has nothing to do with inflation.Not sure if you are sarcastic or not. But anyway, a monthly rate of 4% being the low for 2 years, is actually not a "soft landing" but a scathing indictment of the horrible rate of inflation we have been subjected to for those 2 years. Biden can tout the low unemployment rate all he wants, but bottom line, people are still not able to cover the costs of everyday living in a lot of cases, even with a professional type job. Here is the Twin Cities, a decent 2 bedroom apt is close 2000 per month. My grandson has a college degree, a job with Hennepin county, but is living with us because he makes only about 50k per year. Even if he only got a one bedroom, that is about 1600/month, or 40% of his PRE-TAX, yes, PRE TAX, income. Buy a house and have kids, seems totally out of the question. That is why it simply doesnt resonate when Biden says how great the economy is. It is not all, or maybe even mostly Biden's fault, but it just makes him seem totally out of touch when he says how great the economy is. Of course this is the problem with the Dems these day, and partly why Trumps rhetoric inspires such devotion in his base. If you are not one of the select politically popular groups, the dems have pretty much forgotten about you, except to take you tax money and redistribute it to someone else.