SCOTUS Rules Against Trump Administration IEEPA Tariffs

[Reagan]

 

 

[TheMissingBand]

9 hours ago, OlDawg said:

12 hours ago, OlDawg said:

 

The Feds maintaining a higher interest rate than needed are also affecting the slower pace of disinflation. The Fed is slowing down the drop on purpose. They want to ease into 2%. Not crash.

 

When the Feds kept raising rates, and the extra money people received ran out, they had to pull back some. That helped cool inflation as well.

Where’ve you been, sir? Excellent analysis. I think the higher interest rates are keeping inflation lower, the two point reduction in the fed rate that trump is demanding with add multiple points to the inflation rate, in my estimation.  
 

It’s all relevant. Two point drop in mortgages and the housing market will take off like we haven’t seen in years. Demand will far exceed supply and prices will soar, etc… he wants the lower interest rates so that our debt payments will decrease and continuing to borrow at the federal level won’t sting so badly. But it’ll be a really rough time for those of us already struggling with high prices.  
 

I’m not a tinfoil hat kind of person, but I’m starting to wonder if these poor fiscal policies aren’t merely mismanagement, but instead pushing us towards an alternative to the dollar that his family keeps pushing. 

[OlDawg]

Good summary article on the current state of personal finances. The actual numbers may surprise many.

(Hint: Personal debt to income is at its lowest level since the 90’s.)

This is the hidden content, please

• Sign In
• or
• Sign Up

Well done to those who are finally becoming more financially responsible. This is the real key to personal freedom.
 

[TheMissingBand]

55 minutes ago, OlDawg said:

Good summary article on the current state of personal finances. The actual numbers may surprise many.

(Hint: Personal debt to income is at its lowest level since the 90’s.)

This is the hidden content, please

• Sign In
• or
• Sign Up

Well done to those who are finally becoming more financially responsible. This is the real key to personal freedom.
 

I have a friend that’s in management at one of the largest local credit unions. I asked her what they’d do if Trump’s plan to limit interest rates to 10% was to actually be implemented. She said that they’d still extend credit, but only to customers who deserved a 10% interest rate, dramatically limiting the credit extended to risky borrowers… typically the ones who rely upon credit the most.  
 

To your point, the proposed cap on credit card interest rates could also push the debt to income rate to even lower lows, lol. 
 

I think that it can be seen from other perspectives, too. Higher mortgage rates are keeping a lot of people in their current homes/mortgages because the cost to finance a new property is keeping them in their old home. If you’re in a 200k mortgage financed at 2.75, but the next logical upgrade is to a 350k mortgage, but at 6.00, you’re probably not going to upgrade.  You could have afforded that $350k mortgage at 2.75, but not at 6.0-so they stay put. Trump’s demand to scrub 2 points off of the fed rate (and assuming there’d be a corresponding drop in mortgage rates) would move a lot of people to upgrade, but with resulting inflation that would drive prices up further.  The uncomfortable truth is that low mortgage rates (too low, probably) caused problems in the system that were just now beginning to understand.

Same story with vehicle debt. Tariffs cause higher prices, and high interest rates discourage purchases… end result is a lower DTI.  It’s a win, I guess.  The fact that mortgage delinquencies and auto loan defaults are rising is a much better indication of where we stand financially.