Politics

[Ray B]

The FED will get a lot of the blame because it is an easy target and not specifically tied to the DemonRats. But monetary policy with regard to interest rates will only have a slight marginal effect when the primary causes of inflation are the govt adding $5Trillion to the economy and shutting down the energy sector.

 

[CoElkHunter]

The FED will get a lot of the blame because it is an easy target and not specifically tied to the DemonRats. But monetary policy with regard to interest rates will only have a slight marginal effect when the primary causes of inflation are the govt adding $5Trillion to the economy and shutting down the energy sector.

Yep. And it's going to exacerbated by the Fed drawing down THEIR multi trillion dollar balance sheet which again, they've waited too long to do. It was more free money not accounted for in our financial system.

 

[lwaters]

Wait till people start opening them 401k statements and see the big drop that's going to happen. I think a 6% house loan will put a lot out that market for a house.

 

[sgt_zim]

Wait till people start opening them 401k statements and see the big drop that's going to happen. I think a 6% house loan will put a lot out that market for a house.

unfortunately what'll happen is RE values will crater. that's the real fear with raising interest rates at this point...the RE bubble. we're as safe as anybody down here in Texas, but the west coast, the east coast...a RE value crash would destroy those economies

As soon as my leases expire, going to start selling some of my rental properties. that'll start in March.

 

[CoElkHunter]

unfortunately what'll happen is RE values will crater. that's the real fear with raising interest rates at this point...the RE bubble. we're as safe as anybody down here in Texas, but the west coast, the east coast...a RE value crash would destroy those economies

As soon as my leases expire, going to start selling some of my rental properties. that'll start in March.

Then they'll be moving to Texas? LOL

 

[Ray B]

Regarding real estate values, I'm concerned about our young (about 30) neighbor. She just purchased the house next door for well over $600K. The house sold six years ago for $300K. I fear that a collapse will put her under water on her loan- but then I don't know anything about the finances so it's just speculation and concern.

 

[Areaonereal]

Regarding real estate values, I'm concerned about our young (about 30) neighbor. She just purchased the house next door for well over $600K. The house sold six years ago for $300K. I fear that a collapse will put her under water on her loan- but then I don't know anything about the finances so it's just speculation and concern.

Oof course it will and the feds will baiil her out

 

[CoElkHunter]

Regarding real estate values, I'm concerned about our young (about 30) neighbor. She just purchased the house next door for well over $600K. The house sold six years ago for $300K. I fear that a collapse will put her under water on her loan- but then I don't know anything about the finances so it's just speculation and concern.

Remember 2008? I hope too for the young people, who actually had to prove their income when buying a home this time around, is not the disaster of falling home values we saw back then? I'm hoping with targeted interest rate increases and the resolution of supply chain/worker issues, our current state of affairs can be resolved in a couple of years without having to go through another Great Recession. Hope is eternal I guess?

 

[cpr0312]

Pretty much sums up this worthless, anti American, lunatic clown show!

 

[cpr0312]

 

[Boyd Brooks]

Why does it seem like every 100 years in the late teens or early twenties it requires an armed conflict to bring the lunatics down and common sense to prevail?

 

[LivingTheDream]

Regarding real estate values, I'm concerned about our young (about 30) neighbor. She just purchased the house next door for well over $600K. The house sold six years ago for $300K. I fear that a collapse will put her under water on her loan- but then I don't know anything about the finances so it's just speculation and concern.

Well it kind of depends if she has a fixed rate and the stability of her job. A 3% 30 year at a fixed rate, assuming her job gives her a steady income she will be fine in the long term.

 

[WAB]

I see that Ontario has declared a state of emergency and is threatening to fine, jail and cancel the license of any trucker who does not obey them. Who exactly is going to haul their goods when there are no licensed truckers? Do they think this stuff up on their own?

I am afraid the Ottawa situation will not end well….when Trudeau has all the power to end it without a confrontation to just lift the mandates…but I am sure he wants the win, regardless of the consequences. This will be a true wake up for us all on both sides of the border….pay attention, a turning point in this Covid debacle affecting us all. On another point, if you believe inflation at 7.5 per cent you have not been out of the house. Closer 15 per cent in reality for anything you are purchasing….labor is up 20 plus per cent locally, if you can find anyone that wants to work. Banks are flush with cash with minimal demannd.

 

[Alistair]

Well it kind of depends if she has a fixed rate and the stability of her job. A 3% 30 year at a fixed rate, assuming her job gives her a steady income she will be fine in the long term.

It might even be to her benefit.

RE pricing matters only to those buying or selling. If you've already entered into a mortgage with fixed interest and just intend to live in the property, a bit of inflation is no bad thing. As long as your wages increase with it, of course.

It's the same with any debt. If inflation this year is 15%, you negotiate a 15% wage increase to stand still, but the amount you've borrowed is unchanged and on fixed interest, then you're just depreciating away the debt in real terms (hours worked to pay it). After that, what does it matter what the paper value of the property is? You get to live where you want and not pay rent. Plus your mortgage payments as a percentage of monthly earnings just dropped 15%. It's effectively the governmental model to borrowing, not the private citizen approach.

With the job market as it is, people with decent career prospects, but at an early stage in their career can reasonably expect a big pay rise this year, so long as they're smart enough to negotiate hard.

 

[Wheels]

 

[Wheels]

I see that Ontario has declared a state of emergency and is threatening to fine, jail and cancel the license of any trucker who does not obey them. Who exactly is going to haul their goods when there are no licensed truckers? Do they think this stuff up on their own?

When I grow up I want to be a Canadian trucker!

 

[jpr9954]

 

[jpr9954]

 

[Wheels]

 

[cpr0312]