tag:blogger.com,1999:blog-6616959642391988608.post5936716667743548496..comments2024-03-18T13:22:06.536-07:00Comments on Calafia Beach Pundit: Why higher interest rates are not bad newsScott Grannishttp://www.blogger.com/profile/14028519647946868684noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-6616959642391988608.post-10855313793618469652013-01-28T20:47:16.963-08:002013-01-28T20:47:16.963-08:00Loan modification is a permanent change to the ter...Loan modification is a permanent change to the terms of your mortgage or home loan.<br /><br /><a href="http://www.lalegal.ca/" rel="nofollow">loan modifications</a>brycecanyonhorsebackhttps://www.blogger.com/profile/05998746244941415858noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-83047833917066224022012-03-27T01:07:26.540-07:002012-03-27T01:07:26.540-07:00This comment has been removed by a blog administrator.cruzcarlopaydayloanshttps://www.blogger.com/profile/00635578027693537697noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64262530736389874882012-03-22T11:32:50.496-07:002012-03-22T11:32:50.496-07:00Interesting comment by guy above to go back 30 to ...Interesting comment by guy above to go back 30 to 40 years and compare the ups and downs of <a href="http://whathouseuk.hubpages.com/hub/The-Return-of-the-95-Mortgage" rel="nofollow">mortgage</a> rates, not just a few months or the odd year.WhatHouse.co.ukhttps://www.blogger.com/profile/16671244233563417811noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-10717280362114320412012-03-21T17:40:56.295-07:002012-03-21T17:40:56.295-07:00"People will buy real estate if they think th..."People will buy real estate if they think the bottom has been reached. Sheesh, people were buying real estate like hotcakes in the 1980s at double digit interest rates. <br /><br />There could be an outright explosion on the upside n current real estate. "<br /><br />Ben Jamin, despite good news and good charts, this recovery is extremely weak...<br /><br />Thus in such an environment,Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-26585280647153989762012-03-21T15:31:02.465-07:002012-03-21T15:31:02.465-07:00I like bill Gross, but he seems a bit whacky of la...I like bill Gross, but he seems a bit whacky of late.<br /><br />However, he makes a key point---deflation is very much a risk today, as the Japan experience spells out clearly. <br /><br />Some say the CPI is showing inflation, but the CPI overstates inflation. The Cleveland index suggests we are well under 2 percent on the inflation watch, and still some quarters are braying for tighter money. Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-72127803301802495042012-03-21T12:45:17.707-07:002012-03-21T12:45:17.707-07:00Gross seems to ignore the fact that bank lending t...Gross seems to ignore the fact that bank lending to small and medium-sized business is growing at double digit rates. Banks can lend to all sorts of borrowers for much more than 0.25%. Banks almost never hold on to mortgages they buy; the biggest mortgage brokers simply package the loans for a fee and sell them; many also do the servicing on the loans for a fee. Most of the interest rate risk of Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-85666869649780861742012-03-21T12:39:10.092-07:002012-03-21T12:39:10.092-07:00Sorry, Scott, my bad: a non selective, copy and pa...Sorry, Scott, my bad: a non selective, copy and paste on my part.<br /><br />Perhaps a better example for Gross to have made would be: why would a bank want to make a 30 year mortgage at a 3.9% annual rate or a commercial loan of any significant duration at these historically low rates - unless they can immediately sell them to an entity which bundles them into a sort of bond.<br /><br />As GrossWilliamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-14162704909075178942012-03-21T12:36:04.267-07:002012-03-21T12:36:04.267-07:00For the chart Benjamin wants to see, go to the Fed...For the chart Benjamin wants to see, go to the Federal Reserve Bank of St. Louis – FRED. Get the 10 year Treasury constant maturity rate chart DGS10. It goes from 1960. It shows rates are ridiculously low. Bonds have been in a bear market since the double dip in the early eighties. Why? Too much financial engineering?<br /><br />If the economy can collapse from rates going up some from hereSquirehttps://www.blogger.com/profile/14088030568579672500noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-62103760706327747482012-03-21T08:34:50.939-07:002012-03-21T08:34:50.939-07:00With all due respect to Mr. Gross, I have a very d...With all due respect to Mr. Gross, I have a very difficult time understanding exactly what it is he is saying. I think he mixes at least one too many metaphors.Scott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-36375090738976774302012-03-21T08:27:38.152-07:002012-03-21T08:27:38.152-07:00In a Barron's Roundtable interview, Bill Gross...In a Barron's Roundtable interview, Bill Gross that these interesting comments:<br /><br />"...there is too little return on money. Central bankers don't understand that because their models don't permit it. There has never been a time, other than the Japanese experience of the past 10 years, when money that doesn't pay a return deflates instead of reflating. In the past 30 Williamhttps://www.blogger.com/profile/04418491109912775561noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-39846176704519724152012-03-21T07:07:13.478-07:002012-03-21T07:07:13.478-07:00Higher interest rates will absolutely affect the p...Higher interest rates will absolutely affect the prices of homes. The median income will remain generally unchanged. With a constant D/E ratio, homeowners will still only be able to afford certain monthly payments. If you are going to increase the int. rate this will lower the amt one can pay in principal. Thus, this will lower the price one can buy a house at. Buy a house when int. rates Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-15735475333902513962012-03-21T06:46:53.713-07:002012-03-21T06:46:53.713-07:00Reality check -- higher interest rates are bad for...Reality check -- higher interest rates are bad for business, but good for monetary policy, and the two are not synonymous -- let's not mislead ourselves into thinking otherwise...McKibbinUSAhttps://www.blogger.com/profile/10545798495680527622noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79526333766749528932012-03-20T22:32:22.268-07:002012-03-20T22:32:22.268-07:00Unknown:
I wish people would drag out some charts...Unknown:<br /><br />I wish people would drag out some charts of inflation and interest rates going back to the 1960s.<br /><br />Inflation and interest rates are just way, way low today. Dead.<br /><br />A bump up here to there hardly matters. <br /><br />I can remember when the WSJ told Volcker he was being too tight and that since 5 percent inflation had been reached (an improvement from Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-91276299789804597132012-03-20T19:38:12.639-07:002012-03-20T19:38:12.639-07:00Anyone been noticing even the Federal Funds rate h...Anyone been noticing even the Federal Funds rate has knocked upward lately? Would be *really* interesting to see what would happen if it started bumping up against the FOMC's 0.25% target.<br /><br /><a href="http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm/" rel="nofollow">Federal Funds Rate</a><br /><a href="http://www.ntrs.com/pws/jsp/display2.jsp?XML=pages/nt/0601/Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-64870697813286990092012-03-20T18:50:27.533-07:002012-03-20T18:50:27.533-07:00Hans-
People will buy real estate if they think t...Hans-<br /><br />People will buy real estate if they think the bottom has been reached. Sheesh, people were buying real estate like hotcakes in the 1980s at double digit interest rates. <br /><br />There could be an outright explosion on the upside n current real estate. <br /><br />We are very close to a large, sustained secular bull market in equities and property. Maybe a Romney Presidency, Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-86215058312838158522012-03-20T17:14:42.257-07:002012-03-20T17:14:42.257-07:00"If mortgage rates are headed higher, won'..."If mortgage rates are headed higher, won't this slow or possibly halt the nascent housing market recovery? No,"<br /><br />I would agree with the above, in a normal recovery cycle, but this one is tepid at best..Hanshttps://www.blogger.com/profile/05183141792723754273noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-28944063745786018422012-03-20T13:32:56.179-07:002012-03-20T13:32:56.179-07:00Yields are still so low, who cares. The Fed reall...Yields are still so low, who cares. The Fed really needs to aggressive spur growth, probably through another QE program--although this is erroneously reported and then understood as a signal "the economy is weak."<br /><br />Prosperity is what the USA needs, a good long boom, without too much borrowing.<br /><br />The federal government needs to cut back agency spending and trim Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-74772058375079660342012-03-20T12:34:41.051-07:002012-03-20T12:34:41.051-07:00The average maturity of the U.S. debt
is around 5 ...The average maturity of the U.S. debt<br />is around 5 years...Average interest<br />rate is 2.3%....call when the 5 year<br />starts to auction at 3% or higherbroderohttps://www.blogger.com/profile/17510948491117506660noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-79283798802941922182012-03-20T12:28:12.834-07:002012-03-20T12:28:12.834-07:00Good question, but there is no clear answer. Highe...Good question, but there is no clear answer. Higher interest rates will definitely increase federal debt servicing costs, and outstanding federal debt is gigantic and likely to increase by at least $1 trillion this year. But to the extent that higher interest rates reflect a healthier economy, then the outlook for federal revenues improves at the same time that debt service costs rise. A strongerScott Grannishttps://www.blogger.com/profile/14028519647946868684noreply@blogger.comtag:blogger.com,1999:blog-6616959642391988608.post-7874070444653905172012-03-20T12:16:33.185-07:002012-03-20T12:16:33.185-07:00aren't the higher treasury yields bad news for...aren't the higher treasury yields bad news for the us govt?syarnallhttps://www.blogger.com/profile/11314776399218101185noreply@blogger.com