http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/ Building a Home for Real Estate Information™ Tue, 07 Feb 2012 22:58:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/comment-page-1/#comment-567 Steve Harney Sat, 20 Feb 2010 01:23:29 +0000 http://kcmblog.com/?p=2734#comment-567 Great points Cary! Great points Cary!

]]> http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/comment-page-1/#comment-552 Cary Blumenfeld Wed, 17 Feb 2010 18:14:33 +0000 http://kcmblog.com/?p=2734#comment-552 I can definitely see the Fed letting interest rates increase dramatically, and dramatically to me means 1%-2%. The number one concern for the Fed right now is our unemployment. According to the Director, Dr. Doug Elmendorf, of the Congressional Budget office in Washington D.C., we will not see the natural rate of unemployment again (which happens to be 5% regularly) until 2014. This is a major problem, because currently in the United States, there is a fundamental disconnect between our tax revenues and debt. When people don't work, they can't buy homes and the government receives a much smaller amount of tax revenues, and without the taxes, the Fed has no ability to continue to support the housing market. A positive aspect is private lenders entering the market again, but they are still extremely cautious in lending, as they should be. I can definitely see the Fed letting interest rates increase dramatically, and dramatically to me means 1%-2%. The number one concern for the Fed right now is our unemployment. According to the Director, Dr. Doug Elmendorf, of the Congressional Budget office in Washington D.C., we will not see the natural rate of unemployment again (which happens to be 5% regularly) until 2014. This is a major problem, because currently in the United States, there is a fundamental disconnect between our tax revenues and debt. When people don’t work, they can’t buy homes and the government receives a much smaller amount of tax revenues, and without the taxes, the Fed has no ability to continue to support the housing market. A positive aspect is private lenders entering the market again, but they are still extremely cautious in lending, as they should be.

]]> http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/comment-page-1/#comment-470 30 Year Interest Rates Could Jump March 31, 2010 Tue, 02 Feb 2010 20:29:06 +0000 http://kcmblog.com/?p=2734#comment-470 [...] friends over at Keeping Current Matters has a great breakdown of the arguments of what might happen to [...] [...] friends over at Keeping Current Matters has a great breakdown of the arguments of what might happen to [...]

]]> http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/comment-page-1/#comment-465 Marvin Jensen Mon, 01 Feb 2010 16:05:38 +0000 http://kcmblog.com/?p=2734#comment-465 I think your argument is strong, however, I can't see the Federal Government letting interest rates go to 7-7.5% overnight, it would severely impact the recovery. I think your argument is strong, however, I can’t see the Federal Government letting interest rates go to 7-7.5% overnight, it would severely impact the recovery.

]]> http://www.kcmblog.com/2010/02/01/the-fed-exit-raises-interest-literally/comment-page-1/#comment-464 Steve Harney Mon, 01 Feb 2010 15:37:54 +0000 http://kcmblog.com/?p=2734#comment-464 If every one of us is committed to spreading the information, as I know you are, we can help families make the right decisions. If every one of us is committed to spreading the information, as I know you are, we can help families make the right decisions.

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