I did not graduate from Harvard/Yale so why the try to pushing yields down.

[oldtime]

Quote from marceck:

If you buy right, like now and not in a bubble, it becomes an enforced savings and in the long run a great wealth building tool. Anyone in their 20's or 30's who can qualify should be buying right now. They will be very glad they did so in 20 years.

yeah, that's what I keep telling my kids. But they say things are too unsettled and they're not sure they want to continue living where they are living and they may have a job offer clear across the country somewhere.

The days of buying and selling if you get transfered seem to be over for now.

Back then you never heard anybody say IF I can sell my house.

In my county some houses have been for sale for years.

 

[ammo]

Quote from marceck:

If you buy right, like now and not in a bubble, it becomes an enforced savings and in the long run a great wealth building tool. Anyone in their 20's or 30's who can qualify should be buying right now. They will be very glad they did so in 20 years.

anyone in there 20's or 30's would be better off buying a multiple unit property and let the tenants pay off your mortgage

 

[nutmeg]

Quote from ammo:

anyone in there 20's or 30's would be better off buying a multiple unit property and let the tenants pay off your mortgage

Yuppers, gives you something to do for 10, 20 years till the taxes are greater than the mortgage payment, then you can sell and pay taxes on the depreciation and buy a canoe with the left over forced savings and finance the paddles.

 

[timbo]

Quote from nutmeg:

Yuppers, gives you something to do for 10, 20 years till the taxes are greater than the mortgage payment, then you can sell and pay taxes on the depreciation and buy a canoe with the left over forced savings and finance the paddles.

Very true.

 

[athlonmank8]

Quote from peilthetraveler:

If PITI is the same as rent, how is a house a black hole? I pay $1100 per month for my mortgage(PITI) and to rent would cost $1350 for the same size place. I definately dont spend $250 per month on upkeep as I cut the lawn and do any repairs myself, but even if I didnt, I cant imagine i would spend $250 per month to make it equal with renting. Not to mention about $300 per month is going towards equity, something that would be lost in rent, so in reality owning for me puts $550 in my pocket every month vs renting, not to mention that rent goes up about 2-4% per year taking more money out of your pocket.

I suppose there are some markets where its better to rent, but you cant just generally say owning is a black hole for money.

You don't pay property taxes?

You're the smartest person in the world.

Quote from peilthetraveler:

Rebuttal to your points...

Don't even bother. I'm sick of hearing your brain-dead replies.

 

[Froglet]

If there is such thing as equity. lolz

 

[wagthedog]

Quote from Froglet:

I am asking the same question. I want someone from the industry or insight to tell me how this YIELD CURVE even matters for bank.

Would a bank underwrite a 30 year for 2% ?! i dont think so.

At what point does the treasury curve lose its proxy for 'loans'.

How do banks make money BEFORE and AFTER this event?

In the past recessions, the Fed could stimulate the economy just by lowering interest rates since these recessions were brought on by supply disruptions/labor costs/etc. However, we are dealing with a different beast here. Demand destruction. The overall pubic in developed countries have seen a sharp drop in demand similar to the drop in Japan in the 90's. You can not stimulate a pubic to buy stuff they don't want anymore just because it is cheaper to borrow money to buy it.

This is why none of the stimulus has or will work. Time and lowering overall tax rates will be the only thing that fixes demand destruction.

All we did was not let any of the supply in the economy fail and now the profits left will be shared between too big of a group. People need to fail and bad loans need to be written off before we recover. If we don't do this, welcome to Japan.