Fed Insider says Interest Rates will be Raised Repeatedly

a reply to: intrptr

Double digits for loans? Now? What sort of loan are you applying for and what's your credit history like?

Also, what bank is giving 2% on savings?

originally posted by: Phage
a reply to: intrptr

Double digits for loans? Now? What sort of loan are you applying for and what's your credit history like?

Also, what bank is giving 2% on savings?

I should have said less than two percent, my bad.

The gap between the rich and poor is growing, you're growing it.

You also know as we'll that interest rates on loans are not what they advertise.

Like "No interest" for three years or some such? Yah, pay now or pay out later.

a reply to: CB328

Good for CD income.

a reply to: intrptr

Like "No interest" for three years or some such? Yah, pay now or pay out later.

There is something to be said for educating one's self. Back in the day I was offered a variable rate, interest only mortgage. I said, "Say what?"

There are two reasons to accept such a loan.
1) If you are buying a property which you expect to flip.
2) You have no notion of finance.

There were a lot of #2s around back then. That's what pretty much led to the recession.

a reply to: CB328


'Repeated' rate hikes can be the 4 increases the OP insider reports...or could be only 2 increases in the next 13 months, which will factually be 'Repeated' increases.


next off... when or IF the desired $2-3Trillion of off-shore corporate profits do return to the USA...@ a reduced tax
Watch as Inflation of +10% results with too much money in the system from returning corp. profits

(the TBTF Banks have been tight handed in all the bail-out monies handed to them by the Fed, Balance Sheet at around -$4Trillion... If that TBTF Money were allowed to circulate in the economy we would be already be in receivership as a nation.

a reply to: Phage

Back in the day I was offered a variable rate, interest only mortgage. I said, "Say what?"

"Variable" as in going up, due to inflation, which banks introduced with fiat currency.

Compared to that taxes are miniscule.

"Back in the day:" thy used to send me master cards in the mail. I cut them in two and threw them out. Others are saddled with permanent Credit debt nowadays.

Debt slavery, the reason congress should be the only ones to 'coin money and regulate the value thereof'.

This new war in the ME is going to drive gas prices to over 5.00 a gal after xmas and everything else will follow suite especially groceries that all have to be trucked in.

And if we bomb N Korea...yikes!!

It would be wise to stock up on strawberry caveman paleo formula , believe me!!

a reply to: intrptr

"Back in the day:" thy used to send me master cards in the mail. I cut them in two and threw them out.

I took pretty good advantage of it, actually. "Credit surfing" with no interest transfers. That was back in the day, when I carried balances on my credit cards. Managed to save a good chunk while eliminating those balances.

a reply to: CB328

They were saying that for an easy 6 months before the election was over, they have to raise rates but it will be like .25% here or there we are not looking at 10% out the gate.

originally posted by: Phage
a reply to: CB328
Actually, it doesn't really take an insider to know this.

If interest goes up to much people will have to pay noticeably more for car and home loans,

Guess what? It also means that interest on savings will go up.

You really do have to do the dance to get an overall advantage of that by saving. Currently though, in the UK, most of the highest rates are actually on current accounts. It could be that fixed % savings are the better chance than variables for instance in what has been a long haul for many over the last decade for those not on a fixed rate, however that could change, how quickly though is how you sniff the wind.
The negatives though, will be in the cost of things in the pipeline which, here in the UK have been steadily rising over the last couple of years despite the low interest rates, and while there has been a two year moratorium on pension increases, and the like.
Those with mortgages as of now will also have some hard thinking to do, as believe it or not, many in the cities here especially, but not exclusively, have worked out that for themselves that it is cheaper to rent over a long period.
Should anything change too quickly now..as it might, even the erstwhile yuppies will be rioting on the street, and as yet, none of that has anything to do with what BREXIT could bring.

originally posted by: Phage
a reply to: intrptr

"Back in the day:" thy used to send me master cards in the mail. I cut them in two and threw them out.

I took pretty good advantage of it, actually. "Credit surfing" with no interest transfers. That was back in the day, when I carried balances on my credit cards. Managed to save a good chunk while eliminating those balances.

It was easy to save back then, wasn't it?

I never took a loan, had insurance, or credit cards. As far as they are concerned I don't exist. If I need something I pay cash, If I can't afford it, I don't need it.

You maintain credit in case you need a loan, but don't pay interest because you pay off your cards. Thats easy for you, you got yours back when it was 'easy to save'. Companies had benefits, offered retirement and cost of living was much lower.

Now I'm poor, you're 'well off' and we both sit and surf the internet.

a reply to: smurfy

Those with mortgages as of now will also have some hard thinking to do, as believe it or not, many in the cities here especially, but not exclusively, have worked out that for themselves that it is cheaper to rent over a long period.

As of now, mortgage interest rates are as low as they have ever been. But they don't really have a direct connection to the prime rate anyhow. Unless you're talking about a HELOC.

Should anything change too quickly now..

The Fed is not known to be quick.

Yes I'm waiting for the player to do the first step.....

i figure a central bank in Asia will really surprise us on a Sunday and then it's on.......holding only Silver round ounes now...just 98 of em

originally posted by: Phage
a reply to: smurfy

Those with mortgages as of now will also have some hard thinking to do, as believe it or not, many in the cities here especially, but not exclusively, have worked out that for themselves that it is cheaper to rent over a long period.

As of now, mortgage interest rates are as low as they have ever been. But they don't really have a direct connection to the prime rate anyhow. Unless you're talking about a HELOC.

Should anything change too quickly now..

The Fed is not known to be quick.

Only not so quick in the release of the news, they waited for the Bank of England to do their work first...as if there is no attachment.
That's not just what I was getting at, sure the interest rates were low over the period, but mortgages here are expensive to begin with, and many people through the crash have struggled to pay even the mortgage, lost jobs, lost firms, lost customers, and lost large original value equity, (any extra loan on those people at the time would be horrendous, many homes went down in value in the £100,000 mark or more) ...a biggie here for many, and one good reason why so many went back to renting homes, and vehicles if they still had some buoyancy. All sorts in the mash, all riven with pitfalls no matter what you do.

originally posted by: Phage
a reply to: toysforadults

My hope if that the cost of good goes down as goods will be cheaper to purchase overseas.

The state of the Dollar hasn't been helping toward that end. Not sure how interest rates relate to that.

Raising interest rates would put short term downward pressure on inflationary forces.

At least in small increments. If we raised interest rates drastically it could cause a deflationary spiral. It's basically the fed recalling its inflation bomb.

a reply to: Phage

I remember growing-up in the 70's, if I recall correctly, interest rates on savings accounts were between 6% and 8%. School loans were only at 2%. I think money market accounts were at 11% or higher. I wonder if we'll ever see interest rates like that again.

The first house my wife and I bought in the 80's, the mortgage interest rate was at 11%! Yikes!

a reply to: WeRpeons

I wonder if we'll ever see interest rates like that again.

That and better. Bigly better. Believe me.


Yikes, indeed.

a reply to: ScepticScot

well with a stronger dollar foreign goods and materials and things like that will be less expensive as the dollar has more purchasing power so retailers and ant other big movers and shakers will be experiencing higher profit ratios increasing their margins meaning they will be investing more

That might have the effect of crashing some home markets. I assume someone there is considering that? Seeing as how the home markets were a big part of the 2008 crash...

(Not raising the rates, but the home market crash cascading across the economy. Different trigger, same possible effect)

a reply to: CB328

This is exactly what many of us said would happen when the Fed not only bottomed out the interest rate, but then idiotically overprinted money in a near zero interest environment. It's called "hyperinflation" and it will ultimately be the price the US will pay for their artificially preventing the deflation America should have seen happen 8 years ago. They overreacted.