Wasn't this supposed to encourage banks to lend? Where is cash flowing? Where is the money banks getting from the FED going? Why isn't the FED opening a new unit to lend directly to companies? Why don't we see inflation? Please Discuss!
Well, I have a second mortgage on some rental property that is directly related to the prime. So my payment is way down, allowing me to spend more on other stuff. SM
its not, but when your a clueless clown like Bernanke you cannot figure out that your theories are shit. They need to start forcing investors taking losses on credit portfolios, but they wont do it because they lack the balls
I have a 4.75% fixed rate 15-year mortgage, and I never ever thought rates would be that low again. I'll probably refinance soon which will put more money into my pocket.
rates for mortgages don't stay for more than 7%. rates for variable can stay at 2%. so you are paying double amount of interest on fixed rate. max rate is normally at 7% not any higher for mortgages. depending on downpayment, banks aer gauranteed profit at 5% rate money to mortgages with 35% downpayment with house as collateral. banks get to borrow money at fed rate. these banks make their money for just brokering the mortgage. these banks and mortgage brokers just got greedy in one of the best profitable businesses which is banking.
What is wrong with that? If wealth is destroyed why not recreate it? If it were to cause inflation it would have in the first place, right?