In my neighborhood in central Austin 60+ year old 1,800 sq ft houses have been selling for $1 million+ if they have been updated, $800k if sold as a tear down. So if a family buys a million $ house puts $200k down on a 3% loan their PITI would be around $5,500 month at 6%+ $7,500 meaning a family would need a monthly income of $30k to qualify. Of course housing prices will have to come down.
Interest rates were artificially kept low which allowed the wealthiest execs to pay NO taxes. Low capital gains rates weren’t enough of a break for them. Their INCOME was paid in stock options and then they borrowed against those so they paid nothing in taxes. They bought back stock, further lining their pockets. Regular people were no longer able to get a decent return on savings accounts or even CDs.
Housing prices have been in another bubble which does not allow for people to get their first home. When the bubble pops the banks and wealthy real estate investors benefit while people get hurt AGAIN.
The prime was held way too low for obvious reasons but mostly so the ultra rich and corporations could basically borrow large amounts of money on over inflated values of their properties for collateral. Housing prices need to be adjusted so the average American can enjoy the society of ownership, not just the elite top country clubbers or mob-a-lago members. New houses are getting built now at an astounding rate, but not for sale, for rent only.
If the Fed, at the Biden administration’s urging, would have acted at the appropriate time it would not have been near as bad as it is. Biden and his minions declared it was transitory. Yeah – look at us now.
Biden, WH claims US has ‘zero inflation’ despite annual rate remaining 8.5%
“It’s a bogus math trick. This is the overall one-month index change. Overall that means that the big drop in fuel oil and gas (following previous massive monthly increases) swamped the huge increases everywhere else,” tweeted Jeffrey Tucker, president of the Brownstone Institute think tank.
“Using the same tactic, you could also observe a one-month 19.2% increase in electricity! But of course we would not do that because that’s dumb,” Tucker added. “The actual increase is 15.2% which we get from calculating year over year.”
John Cooper, director of media and public relations at the conservative Heritage Foundation, tweeted, “Joe Biden claims, multiple times, that there was ‘zero inflation’ in July. Absolutely false. Year-over-year inflation was 8.5% in July.”
The Bureau of Labor statistics laid the data out in black and white — reporting the highest annual jump in food prices since the 1970s, with a 1.3% bump in at-home food costs from June to July and a 10.9% food-cost jump in the past year.
“The all items less food and energy index rose 5.9 percent over the last 12 months,” the official report said, referring to so-called “core inflation.” “The energy index increased 32.9 percent for the 12 months ending July, a smaller increase than the 41.6-percent increase for the period ending June. The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.”
“I don’t think you can spend $6 trillion and not expect inflation” – JP Morgan CEO. Who is spending the money – THE BIDEN ADMIN – Yes, some of this is in his control. Yeah, let’s pay for college degrees, illegal immigrants, gender/woke issues, equally polluting non ready green energy while cutting in place transitional supplies, etc.
During the Congressional hearings this morning, JPMorgan CEO offered a reality check for policy-makers and pollyannas:…there’s a small chance of a soft landing, and then there’s also a chance there’s a mild recession. There’s a chance it could be much worse given the war in Ukraine and all the other global political uncertainties. He says everyone should prepare for all these possibilities."
“Many Americans are feeling the pain, and consumer confidence continues to drop.”
“I don’t think you can spend $6 trillion and not expect inflation”
Jane Edmondson, CEO of EQM Capital summarized the precarious situation:And I question if these rate hikes can even control inflation.
Housing is the perfect example. One of the biggest increases in CPI in August was housing – which of course if being driven by higher interest rates.
I don’t have a lot of confidence that the Fed’s actions are going to be the cure for inflation. Maybe 4-5% inflation is the new normal. And that would be OK in the short-term.”
The Fed is trying to get Inflation under control by continuing to raise interest rates. He wouldn’t be doing this if Biden and his band of criminals had quit the excessive spending. Thanks Joe. You’ll find out how people feel about all of this on Nov 8th.
DatsunMan over 1 year ago
Yes, tell me why raising home loan rates and putting construction workers out of a job will lower bidenflation.
Gen.Flashman over 1 year ago
In my neighborhood in central Austin 60+ year old 1,800 sq ft houses have been selling for $1 million+ if they have been updated, $800k if sold as a tear down. So if a family buys a million $ house puts $200k down on a 3% loan their PITI would be around $5,500 month at 6%+ $7,500 meaning a family would need a monthly income of $30k to qualify. Of course housing prices will have to come down.
Patjade over 1 year ago
It’s a bubble that needed bursting for about a decade.
Nantucket Premium Member over 1 year ago
Interest rates were artificially kept low which allowed the wealthiest execs to pay NO taxes. Low capital gains rates weren’t enough of a break for them. Their INCOME was paid in stock options and then they borrowed against those so they paid nothing in taxes. They bought back stock, further lining their pockets. Regular people were no longer able to get a decent return on savings accounts or even CDs.
Housing prices have been in another bubble which does not allow for people to get their first home. When the bubble pops the banks and wealthy real estate investors benefit while people get hurt AGAIN.
Free Radical over 1 year ago
The prime was held way too low for obvious reasons but mostly so the ultra rich and corporations could basically borrow large amounts of money on over inflated values of their properties for collateral. Housing prices need to be adjusted so the average American can enjoy the society of ownership, not just the elite top country clubbers or mob-a-lago members. New houses are getting built now at an astounding rate, but not for sale, for rent only.
lawguy05 over 1 year ago
If the Fed, at the Biden administration’s urging, would have acted at the appropriate time it would not have been near as bad as it is. Biden and his minions declared it was transitory. Yeah – look at us now.
cdbro over 1 year ago
Biden, WH claims US has ‘zero inflation’ despite annual rate remaining 8.5%
“It’s a bogus math trick. This is the overall one-month index change. Overall that means that the big drop in fuel oil and gas (following previous massive monthly increases) swamped the huge increases everywhere else,” tweeted Jeffrey Tucker, president of the Brownstone Institute think tank.
“Using the same tactic, you could also observe a one-month 19.2% increase in electricity! But of course we would not do that because that’s dumb,” Tucker added. “The actual increase is 15.2% which we get from calculating year over year.”
John Cooper, director of media and public relations at the conservative Heritage Foundation, tweeted, “Joe Biden claims, multiple times, that there was ‘zero inflation’ in July. Absolutely false. Year-over-year inflation was 8.5% in July.”
The Bureau of Labor statistics laid the data out in black and white — reporting the highest annual jump in food prices since the 1970s, with a 1.3% bump in at-home food costs from June to July and a 10.9% food-cost jump in the past year.
“The all items less food and energy index rose 5.9 percent over the last 12 months,” the official report said, referring to so-called “core inflation.” “The energy index increased 32.9 percent for the 12 months ending July, a smaller increase than the 41.6-percent increase for the period ending June. The food index increased 10.9 percent over the last year, the largest 12-month increase since the period ending May 1979.”
cdbro over 1 year ago
“I don’t think you can spend $6 trillion and not expect inflation” – JP Morgan CEO. Who is spending the money – THE BIDEN ADMIN – Yes, some of this is in his control. Yeah, let’s pay for college degrees, illegal immigrants, gender/woke issues, equally polluting non ready green energy while cutting in place transitional supplies, etc.
During the Congressional hearings this morning, JPMorgan CEO offered a reality check for policy-makers and pollyannas:…there’s a small chance of a soft landing, and then there’s also a chance there’s a mild recession. There’s a chance it could be much worse given the war in Ukraine and all the other global political uncertainties. He says everyone should prepare for all these possibilities."
“Many Americans are feeling the pain, and consumer confidence continues to drop.”
“I don’t think you can spend $6 trillion and not expect inflation”
Jane Edmondson, CEO of EQM Capital summarized the precarious situation:And I question if these rate hikes can even control inflation.
Housing is the perfect example. One of the biggest increases in CPI in August was housing – which of course if being driven by higher interest rates.
I don’t have a lot of confidence that the Fed’s actions are going to be the cure for inflation. Maybe 4-5% inflation is the new normal. And that would be OK in the short-term.”
DrDon1 over 1 year ago
Appears that Benson studied Economics at Trump University!
AMBER1 over 1 year ago
Looks like our bubble is about to get “burst”!
FJB Premium Member over 1 year ago
The Fed is trying to get Inflation under control by continuing to raise interest rates. He wouldn’t be doing this if Biden and his band of criminals had quit the excessive spending. Thanks Joe. You’ll find out how people feel about all of this on Nov 8th.