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50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!

 
Anonymous Coward
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05/25/2022 05:42 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Ka fing BOOM!


 Quoting: Goneviral


housing market won't crash. housing market to the moon!
Anonymous Coward
User ID: 83133948
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05/25/2022 05:51 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Oh hell yes! 2% interest would net me some decent loot each month free from the bank. At two percent, that would be like an additional 800 bucks a month from my existing two high yield accounts, not even counting the third one that I just got started. I would just be spending freely. The only problem is that by the time the banks go to the higher rate, my lease will be up and I'll be paying the higher rental rates. I'll have to divert some loot to helping pay for the higher rent. It's like you think you're winning, and then it turns out you're really not..
 Quoting: Anonymous Coward 80692706


Put 10k into I bonds. They're paying a guaranteed 9.62% at this time and could go higher if the rate hikes don't get inflation in check.
 Quoting: Anonymous Coward 83133948


too bad those bonds will never outpace inflation. that high of an interest on bonds should scare you.
 Quoting: Anonymous Coward 83154603


Outpace? No, but they're indexed to the CPI. That is their whole purpose, to keep pace with inflation with zero risk.

You can argue the risk of trusting the 'full faith and credit of the US government' but not in their ability to keep pace with inflation. Where else are you going to get a guaranteed risk free 9.62% in today's climate. Please advise.
Anonymous Coward
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05/25/2022 05:54 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Ka fing BOOM!


 Quoting: Goneviral


housing market won't crash. housing market to the moon!
 Quoting: Anonymous Coward 80882280


Not with high interest rates.

It's never happened throughout history.

The high rates will have the effect of bankrupting many small to mid-sized businesses, which in turn will cause large layoffs and unemployment, which in turn will put a lot of houses on the market either voluntarily or through foreclosure.

The housing market had it's run. Any investment properties should either of been sold already or sold soon if you want to take out the largest profit.
Anonymous Coward
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05/25/2022 05:56 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
A new form of lockdown...

U can't afford fuel to leave...

Lol...
Anonymous Coward
User ID: 83421465
05/25/2022 06:04 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Real question,

Can someone dumb this data down to what it means with a timeline for us non financial types?
 Quoting: Gradient


It just means the bankers fake debt is to high.

So more loans can´t pay for the old loans + interest.

Remember only a new loan can pay for an old loan on the global level. Eventually there are to few left to pay for the old loans.



So instead central banks will likely continue printing and inflation will sky rocket. Perhaps we get a currency collapse soon as well.


They want inflation under control. Perhaps by causing a stock market crash.

But not to much because then the financial weapons of mass destruction implodes => worse depression than 1929.
Anonymous Coward
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05/25/2022 06:08 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
After Kennedy tried to have the U.S to metal backed dollar ...
They opened up his head to their agenda.
DJDOG

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05/25/2022 06:09 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Oh hell yes! 2% interest would net me some decent loot each month free from the bank. At two percent, that would be like an additional 800 bucks a month from my existing two high yield accounts, not even counting the third one that I just got started. I would just be spending freely. The only problem is that by the time the banks go to the higher rate, my lease will be up and I'll be paying the higher rental rates. I'll have to divert some loot to helping pay for the higher rent. It's like you think you're winning, and then it turns out you're really not..
 Quoting: Anonymous Coward 80692706


While that looks good on paper and will be in place for the banks, us little folks will be fortunate to see 1%......
Anonymous Coward
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05/25/2022 06:18 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Does the dollar lose value or artificially pump even more, eh?
Anonymous Coward
User ID: 79838186
United States
05/25/2022 06:21 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Thanks fed for being painted in corner...

30 trillion in debt balance at what interest.
 Quoting: Goneviral


3% is the cap.
Anonymous Coward
User ID: 79838186
United States
05/25/2022 06:23 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Oh hell yes! 2% interest would net me some decent loot each month free from the bank. At two percent, that would be like an additional 800 bucks a month from my existing two high yield accounts, not even counting the third one that I just got started. I would just be spending freely. The only problem is that by the time the banks go to the higher rate, my lease will be up and I'll be paying the higher rental rates. I'll have to divert some loot to helping pay for the higher rent. It's like you think you're winning, and then it turns out you're really not..
 Quoting: Anonymous Coward 80692706


While that looks good on paper and will be in place for the banks, us little folks will be fortunate to see 1%......
 Quoting: DJDOG


not so long ago the little folks were paid 5% on passbook savings.
Anonymous Coward
User ID: 79838186
United States
05/25/2022 06:24 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Ka fing BOOM!


 Quoting: Goneviral


housing market won't crash. housing market to the moon!
 Quoting: Anonymous Coward 80882280


Not with high interest rates.

It's never happened throughout history.

The high rates will have the effect of bankrupting many small to mid-sized businesses, which in turn will cause large layoffs and unemployment, which in turn will put a lot of houses on the market either voluntarily or through foreclosure.

The housing market had it's run. Any investment properties should either of been sold already or sold soon if you want to take out the largest profit.
 Quoting: Anonymous Coward 78551315


My first house had a 9% interest rate.

6% is not high.
Anonymous Coward
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United States
05/25/2022 06:25 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
they are going to jack it to 150 points .
tell the american middle class to suck it!! kiss their ass.
Then go on vacation until October.
Anonymous Coward
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05/25/2022 06:27 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
TBH... not sure three 50 bp hikes are enough to slow the current inflation rate. Might take more. I remember in the 7o's afters Carter's reign of stupidity, mortgage rates were at 21%! Yes, 21%.
Anonymous Coward
User ID: 79838186
United States
05/25/2022 06:27 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Oh hell yes! 2% interest would net me some decent loot each month free from the bank. At two percent, that would be like an additional 800 bucks a month from my existing two high yield accounts, not even counting the third one that I just got started. I would just be spending freely. The only problem is that by the time the banks go to the higher rate, my lease will be up and I'll be paying the higher rental rates. I'll have to divert some loot to helping pay for the higher rent. It's like you think you're winning, and then it turns out you're really not..
 Quoting: Anonymous Coward 80692706


Put 10k into I bonds. They're paying a guaranteed 9.62% at this time and could go higher if the rate hikes don't get inflation in check.
 Quoting: Anonymous Coward 83133948


too bad those bonds will never outpace inflation. that high of an interest on bonds should scare you.
 Quoting: Anonymous Coward 83154603


Outpace? No, but they're indexed to the CPI. That is their whole purpose, to keep pace with inflation with zero risk.

You can argue the risk of trusting the 'full faith and credit of the US government' but not in their ability to keep pace with inflation. Where else are you going to get a guaranteed risk free 9.62% in today's climate. Please advise.
 Quoting: Anonymous Coward 83133948

That rate is only good for 6 months, and your money is tied up for 5 years akin to a CD ie illiquid.

should deflation follow inflation, those bonds may pay 0%.

or worse.

also you are limited to 10k per year.
there is no such thing as a free lunch.
LookinUp1

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United States
05/25/2022 06:32 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Getting $30,000 above listed price for mine, and my realtor said I hadn't listed for $30,000 above the going value.
So, life is full of risks but I bought this little house I'm not thrilled with 2 years and 3 months ago for $400,000, sold it for $650,000. I'm happy to take the money and reinvest it outside of the real estate market for a little while. Hoping to strike a good deal in a couple years from now.
Remember, the first $250,000 profit (above what a home was purchased for) if your primary residence, the profit up to $250,000 avoids capital gains taxes. You can do that every 2 years.
F the IRS
LookinUp1
Anonymous Coward
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05/25/2022 06:47 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Does the dollar lose value or artificially pump even more, eh?
 Quoting: Anonymous Coward 80721428


The dollar against other currencies may continue up because when FED prints then other central banks must also print.

But the dollar vs commodities will go down = inflation.
Anonymous Coward
User ID: 83420897
United Kingdom
05/25/2022 06:49 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
raising interest rates only works if the inflation is caused by too much borrowing, ...guess what?
Anonymous Coward
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05/25/2022 06:52 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
...


Put 10k into I bonds. They're paying a guaranteed 9.62% at this time and could go higher if the rate hikes don't get inflation in check.
 Quoting: Anonymous Coward 83133948


too bad those bonds will never outpace inflation. that high of an interest on bonds should scare you.
 Quoting: Anonymous Coward 83154603


Outpace? No, but they're indexed to the CPI. That is their whole purpose, to keep pace with inflation with zero risk.

You can argue the risk of trusting the 'full faith and credit of the US government' but not in their ability to keep pace with inflation. Where else are you going to get a guaranteed risk free 9.62% in today's climate. Please advise.
 Quoting: Anonymous Coward 83133948

That rate is only good for 6 months, and your money is tied up for 5 years akin to a CD ie illiquid.

should deflation follow inflation, those bonds may pay 0%.

or worse.

also you are limited to 10k per year.
there is no such thing as a free lunch.
 Quoting: Anonymous Coward 79838186


You're only required to hold it for 12 months. You can redeem it anytime after 12 months and pay a 3 month interest penalty to do so. Not at all worried about that. One months I bond interest paid more than my checking account paid in a year. There's also ways to shelter more money, one of them would be to 'gift' $10,000 to your children.

As I said before, show me another risk free place to park saving account funds that is indexed to inflation and I'll give it a look. Until then, I bonds are hard to beat in this environment.

Of course, you could always leave the money in that checking account and watch inflation nibble away at it everyday if that's your thing.
Anonymous Coward
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05/25/2022 06:53 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
"Translation: three more 50bps hike and then the Fed pauses... indefinitely, its next move a cut as the economic recession emerges from hiding."


More inflation and currency collapse coming i suppose.

Someone has to pay for the bankers casino.
 Quoting: Anonymous Coward 83421465


Someone has to pay for importing half the world's population into the US. Someone has to pay for their support and spending money on EBT cards. I mean they need taking care of, right?
 Quoting: 26Degrees


They aren't importing huge numbers. They are importing enough to replace the white people that do t replace the white population out of selfishness. White people did this to themselves by not having enough children and focusing on themselves. They were conned into this and fell for it hook line and sinker. See what Elon has been posting about the replacement rate. Whites need to start popping out kids of this country is finished.
Anonymous Coward
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Netherlands
05/25/2022 07:12 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
TBH... not sure three 50 bp hikes are enough to slow the current inflation rate. Might take more. I remember in the 7o's afters Carter's reign of stupidity, mortgage rates were at 21%! Yes, 21%.
 Quoting: Anonymous Coward 80736688


Raising rates will not slow inflation this time around period.

Today's inflation is from shortages caused by lock downs, supply chain disruptions and deliberate steps taken by Washington to reduce access to the energy. No energy no economy, it's that simple. The raw materials used to make the products we buy continues to go up and raising interest rates won't change that only make matters worse.

Raising rates will attract foreign investments in the dollar making the dollar go up in value. This will bankrupt developing nations. Shi Lanka defaulted on it's debt last week.

One by one the economies outside the US will fall like dominoes until the failures reach the core US economy causing the finial collapse. It will take at a minimum 6 months to a year to get some sort of new economy going so be prepared.

Having 6 months to a years worth of food and water, enough for you and your family, would be a good way to prepare.
Anonymous Coward
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Netherlands
05/25/2022 07:18 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
By the way, raising rates is not about inflation. It's all about protecting the dollar.

Money is power. Washington's power comes from money. This is why the Fed (private bankers) and Washington have such an incestuous relationship. The bankers keep the money flowing and the law makers see to it that the bankers are well taken care of.
Anonymous Coward
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05/25/2022 07:33 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
"Translation: three more 50bps hike and then the Fed pauses... indefinitely, its next move a cut as the economic recession emerges from hiding."


More inflation and currency collapse coming i suppose.

Someone has to pay for the bankers casino.
 Quoting: Anonymous Coward 83421465


Someone has to pay for importing half the world's population into the US. Someone has to pay for their support and spending money on EBT cards. I mean they need taking care of, right?
 Quoting: 26Degrees


They aren't importing huge numbers. They are importing enough to replace the white people that do t replace the white population out of selfishness. White people did this to themselves by not having enough children and focusing on themselves. They were conned into this and fell for it hook line and sinker. See what Elon has been posting about the replacement rate. Whites need to start popping out kids of this country is finished.
 Quoting: Anonymous Coward 81997330


Whites need to kick out the j.

Then end the fed and abolish paper money.
Anonymous Coward
User ID: 80098919
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05/25/2022 07:35 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
By the way, raising rates is not about inflation. It's all about protecting the dollar.

Money is power. Washington's power comes from money. This is why the Fed (private bankers) and Washington have such an incestuous relationship. The bankers keep the money flowing and the law makers see to it that the bankers are well taken care of.
 Quoting: Anonymous Coward 77851242


Resources and the ability to manufacture products from those resources are the true power a brainwashing people to think that paper money is valuable is a good con for a while but as soon as another Nation goes back to commodity based money the Federal reserve Note and the ones calling themselves Israel today are done.
Anonymous Coward
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05/25/2022 07:41 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Ka fing BOOM!


 Quoting: Goneviral


housing market won't crash. housing market to the moon!
 Quoting: Anonymous Coward 80882280


Not with high interest rates.

It's never happened throughout history.

The high rates will have the effect of bankrupting many small to mid-sized businesses, which in turn will cause large layoffs and unemployment, which in turn will put a lot of houses on the market either voluntarily or through foreclosure.

The housing market had it's run. Any investment properties should either of been sold already or sold soon if you want to take out the largest profit.
 Quoting: Anonymous Coward 78551315


My first house had a 9% interest rate.

6% is not high.
 Quoting: Anonymous Coward 79838186


Your first home probably didn't cost $350K (or more) like an average home today costs.

Interest rates on a 30 year mortgage are now averaging 6% (5.92%).

Three more hikes over the next 3 months and they'll be close to that 9%.

I bought my first home in 1976 for $27,400 @ 8.75% interest. My mortgage payment was $178 per month with a 20 year mortgage.

Fast forward to today...

Say a family is looking to buy their first home for $350,000 (prices vary based on location of course, this is just an example).

IF they were able to save $50K for the down payment (big IF), and mortgage $300K, then at the current 6% their mortgage payment would be $1800 per month with a 30 year mortgage, not including property taxes + insurance.

That same house, same price, same 30 year mortgage, except at 9% interest would be $2415 per month, not including property taxes + insurance.

That's $615 per month more, because of the higher interest rate.

That will mean they can't afford it for many people and families.
themessengernevermatt​ers

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05/25/2022 08:04 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
"Translation: three more 50bps hike and then the Fed pauses... indefinitely, its next move a cut as the economic recession emerges from hiding."


More inflation and currency collapse coming i suppose.

Someone has to pay for the bankers casino.
 Quoting: Anonymous Coward 83421465


The bankers should eat the fucking debt and pay the bill. Fuck them, they were investments and they were all bad.
“The rules are simple: they lie to us, we know they're lying, they know we know they're lying, but they keep lying to us, and we keep pretending to believe them.”

Elena Gorokhova, A Mountain of Crumbs
Anonymous Coward
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05/25/2022 08:08 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Are thy listening to AI again?
Anonymous Coward
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05/25/2022 08:14 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Oh hell yes! 2% interest would net me some decent loot each month free from the bank. At two percent, that would be like an additional 800 bucks a month from my existing two high yield accounts, not even counting the third one that I just got started. I would just be spending freely. The only problem is that by the time the banks go to the higher rate, my lease will be up and I'll be paying the higher rental rates. I'll have to divert some loot to helping pay for the higher rent. It's like you think you're winning, and then it turns out you're really not..
 Quoting: Anonymous Coward 80692706


Put 10k into I bonds. They're paying a guaranteed 9.62% at this time and could go higher if the rate hikes don't get inflation in check.
 Quoting: Anonymous Coward 83133948


Everyone is well set and a financial genius on glp
 Quoting: Anonymous Coward 81028362


I know - it's a wonderful world - and I think to myself...
Anonymous Coward
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05/25/2022 08:52 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
clappa
Anonymous Coward
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05/25/2022 10:15 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
"Translation: three more 50bps hike and then the Fed pauses... indefinitely, its next move a cut as the economic recession emerges from hiding."


More inflation and currency collapse coming i suppose.

Someone has to pay for the bankers casino.
 Quoting: Anonymous Coward 83421465



Unless inflation is 2% that is iij impossible
Anonymous Coward
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05/25/2022 10:16 PM
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Re: 50 basis point increase likey at next couple meetings, according to Fed... Ouch!!!
Real question,

Can someone dumb this data down to what it means with a timeline for us non financial types?
 Quoting: Gradient


50 basis points is 1/2 point. Fifty just sound so much higher.





GLP