Can we survive 3 more years of these toons? I don't know. I think when the sub-prime mortgages reset this year the shit is gonna hit it. Quoting: Anastasia Slaymaker
There is something else that is pretty scary about this spring.
For the past year the Fed has been buying mortgage backed securities to force down mortgage rates to lows never before seen to pump up housing. They allocated 1.2 Trillion and the money is about all gone.
They are going to pull out and let the markets adjust to 'normal' which means a huge rate increase.
By march the bottom will fall out of interest rates and put a sudden stop to housing a month or two before the 2010 tax break expires for home purchases.
Conforming loans usually stay about 1/2% under the Jumbo loan rates. Today they are 4.75% and Jumbo is 7%. There is zero fed intervention in Jumbo rates. After March, expect confirming rates to jump to 6.5% or higher.
Not good for the economy Obama.
Lets go work on Global warming...