Tag Archive for: economy

Dude, Where’s The Recession You Keep Harping About? Employment Report B.S.

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Because rates have been climbing all week, I got an email that asked me where the recession is that I have been “harping about” for the last year… Why Rates Are Climbing I first want to address why rates have been climbing all week, and it has to do with the debt ceiling issue. Banks […]Read More

Is China’s Collapse Imminent?

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A lot of smart people say, yes – China’s financial collapse is very likely.  I have addressed China’s woes several times over the last few years, including  (1) China’s Banking System Collapse Is Terrifying; (2) China’s Massive Housing Bubble; and (3) Are China’s Woes Good For Mortgage and Real Estate? I am bringing China up […]Read More

Fed Chair Bernanke Wins Nobel Prize for Agreeing With Nobel Prize Committee

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Dr. Prescribes Steroid And Heroin For My Son! In 2003, my son was not performing well at all – socially, academically, or athletically – so I took him to the doctor. The doctor had spent years doing research but had never actually practiced medicine – so I was a bit concerned when he prescribed steroids […]Read More

Why The Fed Probably Can Never Raise Interest Rates

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Paul Volcker was the 6 foot, 7 inch tall Fed Chairman who raised the Fed Funds Rate to 20% in 1980 and shoved the United States into a massive recession. As a reminder, the Fed Funds Rate is the rate that banks charge each other to borrow “reserves” overnight, and it is currently 0% – […]Read More

Mortgage Rates Way UP; Refi Now… Or Forever Hold Your Peace

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Remember last year when I said rates could either go up, go down or stay the same? Well, I was right. 😊 OK – I was actually right about the rates going up part. And I was just repeating what Barry Habib was saying. Habib thought rates would go up early this year and then […]Read More

Why I Was So WRONG About Interest Rates Rising – Part CCXXIX

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If you Google the word “Wrong,” the below picture pops up in the results: OK… that is a real photo taken at a holiday party (in a photo booth – thank you Danny Winkler) when I really did think rates were going to shoot up. BUT, I am pretty sure I was not thinking about […]Read More

The Fed Halts Rate Increases; Good Or Bad?

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Yesterday, the Fed announced that there will be no more rate hikes in 2019. And many people in the mortgage and real estate industries cheered. But a lot of economists and Fed-watchers are more worried than ever. Here is just one of many articles (from the WSJ) I read today illuminating serious concerns. The Fed […]Read More

Why Higher Rates Are Good? Rates Up After Fed Announced More Rate Increases

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In real estate, we focus on the harm of higher interest rates – higher mortgage payments, less buying power, and fewer refinances for lenders. But, there are some good things for the economy overall that come from higher rates, and this benefits real estate in the long run. Here are a few benefits of higher […]Read More

Economy May Be Back; Happy Holidays From JVM!

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Rates shot up yesterday primarily in response to a much stronger than expected Gross Domestic Product report, indicating that the US Economy is growing much faster than expected. This news sent stock prices way up and bond prices down, as investors left bonds for stocks. This is the type of news (along with strong employment […]Read More