Monday, August 28, 2006
With the Chattering Monkeys and Shoe Shine Boy
Explaining away the housing bubble crash with their theories on rising mortage rates. Where does that leave us when the world comes to terms that mortgage rates will NEVER rise above 6% once we hit 3%. And I mean NEVER. Over the course of history 7% was the average amount for the cost of borrowing money. 200 years ago that is what people paid. Above 5% is high. Once we settle down to 3% - which is where we are heading - how much oes a house cost?
The Feds raised rates 14 times. SO WHAT. society knows the cost of money. The truth is the FEDS stop raising rates because the cost of money was falling while they were raising rates. We are now near a 6 month low. Imagine the embarasment the FEDs would have had to face if mortgage rates hit a 6th low while they were raising rates. IMAGINE THE EMBARASMENT THEY WOULD HAVE FACE WHEN WE HIT A ONE YEAR LOW. That day is coming. When it comes the would and the media will then explain to you why we are heading towards a 3% mortgage with it never rising above 5% again.
The Feds raised rates 14 times. SO WHAT. society knows the cost of money. The truth is the FEDS stop raising rates because the cost of money was falling while they were raising rates. We are now near a 6 month low. Imagine the embarasment the FEDs would have had to face if mortgage rates hit a 6th low while they were raising rates. IMAGINE THE EMBARASMENT THEY WOULD HAVE FACE WHEN WE HIT A ONE YEAR LOW. That day is coming. When it comes the would and the media will then explain to you why we are heading towards a 3% mortgage with it never rising above 5% again.
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