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Re: Election 2010: Teabaggin' the Ds & Rs
Quote:
Originally Posted by Adder
Except (1) Washington can borrow and (2) the senate and white house will prevent the kinds if cuts she foresees from Texas. Meaning the story in Washington is likely to just be continued bug deficits that dint matter much.
What do you mean finally? This is round two. And like the first time, no, it isn't going to mean massive inflation.
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Why is lowering mortgage rates a target? They're already at historic lows. The Fed could lower them to zero and still, few of the people who need them would be able to borrow.* These superlow rates are only available to people with substantial equity in their homes. The people who need the money are underwater and no lender is refi'ing them unless they bring a bag of money to closing. All this shit does is drive more first time buyers into FHA mortgages. It does nothing to stem the strategic and regular defaults which remain the cancer at the center of the market.
*Nevermind the inverse relationship between prices and rates, which shuts many potential new buyers out of the market.
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Last edited by sebastian_dangerfield; 11-06-2010 at 11:54 AM..
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