Trump just hatched a plan to lower mortgage rates, because clearly that’s why no one can afford housing.
They know full-well we can’t afford housing because they refuse to pay higher wages, but that’s money flowing the “wrong” way, so that’s not going to happen as long as the billionaires hold the reins.
Get the fed to lower rates. It’s why he’s attacking Powell now, he’s not lowering them fast enough.
It’s a stupid as shit plan, cause this is the only lever the federal government has to pull for a recession and pulling it early causes increased inflation, but Trump ain’t much of one of those thought-havers.
It also won’t even work, in a more direct, mechanical sense.
The Fed lost control of the actual interest rate months ago now.
Because we also have an ongoing credit/liquidity crisis, because of how much fraud has been going on Wall Street, and we’re also having a currency crisis, because the Japanese carry trade is is unwinding, and foreign nations are buying less of our debt, but our need to issue it is skyrocketing.
So… debt crisis, liquidity crisis, currency crisis… all at the same time.
(By the way the government is gonna shut down again, Jan 30th, unless they figure out another emergency budget. So… get ready for that…)
Those things forced, and continue to force, actual rates outside of the channel the Fed sets for rates, they force rates higher.
Oh and because the interest rate the Fed sets, or tries to, doesn’t actually just, directly change mortgage rates.
Mortgage rates are set by banks, who look at … the above bond market and rates which I just described, along with many other things.
Oh and finally… mortgage rates also don’t directly correlate very well to … actual home prices.
They correspond to regular payments on a mortgage. Not… the amount you’re taking out a mortgage on.
See this is all a bit more complicated than Dementia Don can comprehend.
He just wants a big mac, a participation trophy, and people telling him he’s a good boy.
… he bankrupted multiple casinos.
What is happening now is just, duh, obviously, what would happen if you made this idiot President.
I assume it is either a concept of a plan or actually something that makes it even worse while dressed up as something that sounds positive. It is always one of those two things with Trump.
Mainly yes wages and houses that were 150k like 6 years ago now costing 500k is definitely a major issue, but I have heard that the interest rates are stopping people from selling because they can’t justify picking up a new much higher rate even if they wanted to downsize/move.
I think a lot of boomers might sell if the interest rate can go down, but who knows if that will actually affect prices… They might just pull some greedy b.s “I only sell at max price or hold it for the kids.”
Trump just hatched a plan to lower mortgage rates, because clearly that’s why no one can afford housing.
They know full-well we can’t afford housing because they refuse to pay higher wages, but that’s money flowing the “wrong” way, so that’s not going to happen as long as the billionaires hold the reins.
What’s the “plan”?
Get the fed to lower rates. It’s why he’s attacking Powell now, he’s not lowering them fast enough.
It’s a stupid as shit plan, cause this is the only lever the federal government has to pull for a recession and pulling it early causes increased inflation, but Trump ain’t much of one of those thought-havers.
It also won’t even work, in a more direct, mechanical sense.
The Fed lost control of the actual interest rate months ago now.
Because we also have an ongoing credit/liquidity crisis, because of how much fraud has been going on Wall Street, and we’re also having a currency crisis, because the Japanese carry trade is is unwinding, and foreign nations are buying less of our debt, but our need to issue it is skyrocketing.
So… debt crisis, liquidity crisis, currency crisis… all at the same time.
(By the way the government is gonna shut down again, Jan 30th, unless they figure out another emergency budget. So… get ready for that…)
Those things forced, and continue to force, actual rates outside of the channel the Fed sets for rates, they force rates higher.
Oh and because the interest rate the Fed sets, or tries to, doesn’t actually just, directly change mortgage rates.
Mortgage rates are set by banks, who look at … the above bond market and rates which I just described, along with many other things.
Oh and finally… mortgage rates also don’t directly correlate very well to … actual home prices.
They correspond to regular payments on a mortgage. Not… the amount you’re taking out a mortgage on.
See this is all a bit more complicated than Dementia Don can comprehend.
He just wants a big mac, a participation trophy, and people telling him he’s a good boy.
… he bankrupted multiple casinos.
What is happening now is just, duh, obviously, what would happen if you made this idiot President.
Again.
He actually understands nothing 💀💀💀
Look out! Those spooky skeletons are chasing your comment!!!
I assume it is either a concept of a plan or actually something that makes it even worse while dressed up as something that sounds positive. It is always one of those two things with Trump.
Is it the 50 year mortgage scam?
Probably.
Clearly Americans need more debt.
Mainly yes wages and houses that were 150k like 6 years ago now costing 500k is definitely a major issue, but I have heard that the interest rates are stopping people from selling because they can’t justify picking up a new much higher rate even if they wanted to downsize/move.
I think a lot of boomers might sell if the interest rate can go down, but who knows if that will actually affect prices… They might just pull some greedy b.s “I only sell at max price or hold it for the kids.”
Pretty sure that’s what most people aim for.