Interest Rates - Prediction?

[jficquette]

Quote from Brandonf:

I suspect that things are a lot worse than anyone expects and that rates will continue to rise while we have inflation across the board and a hard landing in the housing market. Its nice that the housing bubble is only in "small geographic area's" but when those small geographic areas have 2/3 of your population and 3/4 of your wealth, it matters a lot more than "they" want you to think. My own opinion is that we see mortgage rates above 8%, possibly above 10%, with in the next few years.

Brandon

I agree Brandon. We have full employment, deficit spending, and a weak dollar. Why anyone would think that the rates are going to stay low in this enviornment are just kidding themselves.

The other misconception is with Oil. Once Oil breaks then inflation is going to pick up and pressure will increase for more rate increases. What people don't get is that energy is a consolidator of liquidity. Once the money that is being spent on energy is freed up it will flow to sectors that are in the inflation numbers.

High oil prices are actually a damper on inflation.

John