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Strategies & Market Trends : The Residential Real Estate Crash Index
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To: ChanceIs who wrote (242230)3/25/2010 1:36:22 PM
From: ChanceIsRead Replies (2) of 306849
 
So what do rising interest rates mean for the economy:

1) Mortgage rates soar. The pundits tell me that all of our hopes rest upon a housing recovery. These high rates should help. New house sales were at a record low yesterday.

2) Government borrowing costs rise - less capital available for loans to private enterprise - or credit card consumption. COF off like a rocket today. Higher interest costs should also help out those catering to the dine out set - restaurants on a wicked run.

3) Do banks get squeezed on higher rates??? I guess not with that steepening yield curve.

4) Most rock heads think that rising rates mean the economy is healing - better go buy some stocks. Except that this time, everything is upside down.

5) ZeroHedge keeps suggesting that Ben and Tim will crash the equity market in order to keep the government borrowing costs down - flight to safety. Well the government's borrowing costs sure are rising. So when do they engineer the crash? Maybe after the banks finish their new equity issuance to get down to something other than a nosebleed leverage ratio. One more rally before the music stops.

I see nothing to drive the market up. OK. OK. Only some 460K (?) lost their jobs today.

Rally on!!!!!!!!
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