Fed announces .75 rate hike. 3 more rate hikes this year ...
this is gonna be a wild ride. And TWSS.
21 Replies
4y
(In response to this post by vt90)
F
fordham
4y
Real estate always goes up!!!!!
Elections have consequences
(In response to this post by vt90)
4y
(In response to this post by fordham)
4y
is nothing available around here. Anything that goes for sell is gone within a day. Usually presale. It will calm down, and prices will level, but you're not getting a deal any time soon.
(In response to this post by UTPr0sim)
4y
Which it will in some respects, as some of the investment buyers may drop out. But how much would it have to drop to pose risk to someone who bought multiple houses as an investment? Don't know, but it would take us at least until next year, I assume.
(In response to this post by reestuart)
4y
Anyone paying attention knew if you pump huge $$$ into the economy you get inflation. Know they are likely to over shoot and cause a recession larger than what probably could have dealt with. Anytime you have serious inflation you are going to need a recession to get it back in line.
Oh well, here we go
(In response to this post by vt90)
4y
priming the pump.
(In response to this post by turkeywinghokie)
Well the concern was that we’d have too little response as they
believe we had following the financial crisis.
Yes, they over shot it (though that’s certainly not the only cause) but there was also a risk to under shooting it, and it’s silly to say that “anyone paying attention” would know the best course of action. Lots of folks were predicting hyper inflation post ‘08 and were obviously wrong. As someone with a degree in economics (though I’m not a PhD economist) I’m pretty skeptical of armchair economists who totally would’ve made the right calls if they had been in charge,
(In response to this post by turkeywinghokie)
4y
And just so you know I have 2 degrees with 1 finance and 1 economics. I called this "transitory" talk BS from the get go. I am also saying now they are going to be reacting on old data and will over shoot. I get the Fed has a tough role, but politics gets in the way and so the decision gets blurry and becomes about more than the economy.
(In response to this post by hucareshokiesrul)
4y
What you learn day one in an economics class "Inflation is too much money chasing too few goods" which is different than the price of a particular good going up or down in relation to demand or scarcity. So to no one's surprise at all who have taken an "Overview of Economics" when you hand out trillions of dollars gratis, you get inflation. The long term effect of this is pernicious as people will build into their mindset that this could happen again which in turn adds more inflation, that's the harder part, getting their trust back again.
(In response to this post by turkeywinghokie)
4y
...the trillions being handed out are accompanied by probably the most severe disruption to the global production of goods in our lifetime (possibly ever). It's like the perfect storm, and anyone paying attention could see it forming on the radar a very long time ago.
(In response to this post by `lag)
4y
that's not even supposed stimulation. Another weird issue is that money is given to people to help them pay their rent, so essentially, you're subsidizing the landlords and the banks not so much the renters. Great, now the latter can continue to keep rents high and borrow a lot more knowing they will be bailed out like this. Result? aside from the moral hazard issues, renter's will now pay more for rent in the future, the free money will cost them more over the long run.
(In response to this post by MP4VT2004)
4y
Private sector landlords provide dwellings for a lot of people who otherwise can't get financing to purchase their own home. I'd much rather see those entrepreneurs stay afloat than for them to go under and for the government to fill the housing void left behind. Many small real estate investors who own rental properties have mortgages on those properties, and their monthly cash flow is not wildly positive. Banks/lenders didn't freeze loan payments during COVID, so those property owners still had to pay their mortgages. If those properties get foreclosed on, the tenants will probably get evicted, so I don't really have an issue with stimulus money going towards housing.
(In response to this post by `lag)
4y
So a lot of folks didn’t and the walked out on their leases when the rent finally came due. Still a lot of cases in the court system of landlords trying to get their back rent back especially in larger cities.
(In response to this post by `lag)
