Mortgage rates hit record lows U.S. mortgage rates fell in the past week to the latest in a series of record lows amid concerns about the state of the U.S. economy, according to a survey released on Thursday by Freddie Mac (OTC BB:FMCC.OB - News), the second-largest U.S. mortgage finance company. Rock-bottom rates should continue to spur demand for home loan refinancing, putting extra cash into consumers' hands that they can save, use to pay off existing debt or funnel into the economy through extra spending. (Soruce: http://finance.yahoo.com/news/Mortg...JhdGU-?x=0&sec=topStories&pos=1&asset=&ccode=) Continue to spur demand? That's the same old crap they said back in early 2007 when the rates were going through the roof. Just who are these morons? If what we have now can spur so much demand, why shouldn't we wait until the rates fall even lower? Hell, lets wait until it goes to zero. Then it can really spur demands! But then again, that's deflation. Uncle Bernie sez that's a baddie.
Thats the problem, they are trying to create demand. They think by keeping rates at 4-5% that the millions of people who own will come back and refinance at a lower rate and use those extra thousands of dollars to pump the economy back up. This economy is so upside down they will try anything possible to create any kind of demand they can and that's even keeping mortgage rates low so that these idiot consumers can go out lower their rate and start buying goods they don't even need. Who knows how low they can drop, with bubble ben bernanke using all his magic he may be able to get these rates down to 2-3% to create the next great bubble, because the only way they know how to grow an economy today is through the use of big fat bubbles.
Hey...that money is going to get pumped into the economy by the refinancer or the taxpayer...it just looks better if its the refinancer doing the spending instead of the government. We will get people spending even if we have to drop money out of helicopters...again.
Weve wasted an entire two years with economic policymakers who are fools and clearly have an interest in the status quo regardless of the general public. They still havent figured out that we arent going back to 2005 and now we have even more debt and everything is more fragile.
Very salient points. We live in an era of wasteful spending. There are countless people who suffer from hunger all around the world and yet we continue to splurge ourselves on crap that we don't even need.
If ya left FDR's regulations in place, the financial sector wouldn't be the casino it is today. Don't blame Bernanke, he's doing what the big banks want done. Flattening the curve makes it more difficult for banks to make money. The big banks will survive but the smaller ones will be bought on the cheap or be a FDIC Friday participant. Remember this is the nature of capitalism, remove as much competition as possible by whatever means possible.