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slapper slater

Us Rates

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Hi all.

Recap, FED rates were at 1% for about two years (plenty of time to be absorbed fully into the economy and become the business norm)

Now, over the last year or so rates have doubled and redoubled! At the same time the bar for credit worthiness is being raised more and more.

The money is evapourating fast in the USA and this is evident in major US industrial heartland. Surely this is the end?

I think you'll get your HPC. I think you'll get a hell of a lot more than you bargained for.

Regards.

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Hi all.

Recap, FED rates were at 1% for about two years (plenty of time to be absorbed fully into the economy and become the business norm)

Now, over the last year or so rates have doubled and redoubled! At the same time the bar for credit worthiness is being raised more and more.

The money is evapourating fast in the USA and this is evident in major US industrial heartland. Surely this is the end?

I think you'll get your HPC. I think you'll get a hell of a lot more than you bargained for.

Regards.

there's a great post on this forum from a few days ago,have a look for it.

it should be under...very,very informative.

deals with the consequences of rapid tightening in money supply(just what is happening now)

....watch the video's,really interesting stuff.

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there's a great post on this forum from a few days ago,have a look for it.

it should be under...very,very informative.

deals with the consequences of rapid tightening in money supply(just what is happening now)

....watch the video's,really interesting stuff.

I know which one you mean, i saw it and my post is a direct response to it (as you guessed?)

It is has put the HUGE FED hikes recently into frightening realisation for me and prompted me to air my concern.

I can't find the post now though unfortunately and I want to put the correct name to my signiture (which is a mathematical reconditioning of a statement from that very film)

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Many US home buyers (80% in California) bought into the house price bubble using short term creative financing loans (interest only etc) that last for about 3-5 years. That was when the Fed rate was around 1%. The Fed rate is up 400% and still climbing and the home loan rates are moving ever so slowly behind. The Adjustable Rate Mortgages (ARMs) are currently averaging 6.4% or about 100% more than 3 years ago. THe bubble markets have seen HPI of over 120% in 5 years. It is not rocket science to work out what will be the result of this. 1989 supercharged. Ditto UK.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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