Economic News

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Per the most recent auction, the 8 week T Bill coupon equivalent was still 4.99% while the 2 year note was 3.57%.
 
I feel like a 25 bps cut is coming. Fed is always slow to react and they don't want to seem political, so a 25 bps cut will feel like a nice middle ground to them.
 
Enigma94 said:
I feel like a 25 bps cut is coming. Fed is always slow to react and they don't want to seem political, so a 25 bps cut will feel like a nice middle ground to them.
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When they declined to do the quarter BP cut last time, I posted that they were painting themselves in a corner because a half BP cut right before the election would be politically unpalatable. They chose to think they would rise above the political fray and do whatever was best when the time came so they didn't need to do the quarter point cut then, and could afford to wait and see and do the half point later if it was needed.

Whelp, the time is now here, and of course they will fold and do the politically expedient thing and only cut by a quarter point this time around and screw us all. That's my prediction at least.

This was easily foreseeable. They should have done the quarter point the last time around. Then they would have had the option of either doing another quarter point this time, or doing nothing, whichever made sense. This was all obvious back then, and so easily avoidable.
 
Thoughts and prayers to all of the Trump supporters and Republicucks who are going to be positively fuming about something good happening in our country. You will overcome!
 
So much winning! I am getting so exhausted by all of this winning, just like Trump said I would!
 
I thought this was coming. Not enough to pile into options or anything, but economically it was the right decision. And politically? They aren't supposed to be political, but I don't think it's "political" for central bankers to want to retain the independence of the central bank. And since we have one candidate who wants to remove that independence, it wouldn't surprise me if Powell et al were (subconsciously perhaps) willing to give all close calls to Kamala.
 
This all worked out perfectly for both my kids. 2 years ago they had no chance at a home because every listing was a bidding war and they were on the waiting list to get on the waiting list for new construction.

When rates went up, they were able to both get houses albeit with mortgages higher than they would have preferred obviously but they plan to be in the houses for at least 10-15 years and they could wait to refinance. Which will happen soon.

They would still be renting without this exact scenario and I am so happy for both of them.

Thanks Joe Biden.
 
but the voters will not "feel" it before the election...
If Trump wins he will claim credit when the positive impact is being felt in February.
 
uncgriff said:
This all worked out perfectly for both my kids. 2 years ago they had no chance at a home because every listing was a bidding war and they were on the waiting list to get on the waiting list for new construction.

When rates went up, they were able to both get houses albeit with mortgages higher than they would have preferred obviously but they plan to be in the houses for at least 10-15 years and they could wait to refinance. Which will happen soon.

They would still be renting without this exact scenario and I am so happy for both of them.

Thanks Joe Biden.
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Wife and I over-extended ourselves a bit moving into our house last May. Luckily a new job helped ease the financial burden some but was really looking forward to refinancing when the time came. Now just need to decide how long to hold out to maximize the mortgage reduction given the proposed additional cuts this year and next.
 
Macksbrownies said:
Wife and I over-extended ourselves a bit moving into our house last May. Luckily a new job helped ease the financial burden some but was really looking forward to refinancing when the time came. Now just need to decide how long to hold out to maximize the mortgage reduction given the proposed additional cuts this year and next.
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Try to pay negative points when you refinance so that you do not have to come out of pocket and make sure you have no pre-payment penalty. As long as you stick to low costs and and no pre-payment penalty, you can refinance as many times as you like (save your own time and personal hassle). The banks are going to be overwhelmed by refinance customers in the next year, but there should be a lot of players jumping back into the market offering some good deals. I have found that Wells Fargo offers the best rates in my area -- especially if you can transfer to them a stock portfolio.
 
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