The Epic American Credit and Bond Bubble Laboratory Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Umunhum who wrote (37912)	8/5/2005 3:44:29 PM
From: philv	Read Replies (2) of 110194

I understand your points, but looking at the bigger picture, if real estate busts, and the lender has to take a loss, that is a done deal. The economic picture will look very ugly in this depression/recession environment. If there are any new borrowers to be found, why would the lender or FED make things even more difficult for this customer? Or if it is a roll over mortgage, and if the customer can't make it at the existing low interest rate, how can he possibly repay at a higher rate? Besides, in such a depression, there would be too few borrowers chasing helicopters full of money that the FED would be pushing to get out of that depression. A real estate melt down is normally followed by a decline in interest rates, not an increase, is it not? Any increase would exacerbate the problem, and I just can't see the ever inflationary FED having any other choice but to lower their funds rate to zero like Japan did if necessary. By then Bernanke might well be sitting in the pilot's seat anyway.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next