http://www.cnbc.com/id/42643384
-Mike
Without a doubt, we will HAVE to see higher interest rates in the future, and IMO its near. Im not a expert obviously, but common sense tells me two things…
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The interest rates are very low right now, and with our debt, the rest of the world will demand higher interest rates in order for them to keep lending. This is no surprise. Add this in to the fact that we’ve been printing SO MUCH MONEY, raising interest rates is the only way they are going to be able to get the money out of the system.
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People will rent instead of buy new houses when this happens, because they wont be able to afford the mortgage interest rate. This means for most investors, NOW is a good time to buy (while interest rates are low) because you can …
Buy the house with low interest rate… and then, in the future when rates are higher, you will be allowed to raise the rent much higher and still get tenants (mortgage interest rates and rent are related, because people will be forced to rent even at a higher rate due to not being able to afford a mortgage), thus, making a KILLING on your investment with rentals.
http://online.wsj.com/article/SB20001424052748704587004576243121742467598.html
-Mike<financial considerations aside…heavy bias towards schools in DC…a spectacular city.
http://www.youtube.com/watch?v=4pZE_J98hOg&NR=1
I agree that at SOME POINT interest rates will go higher. BUT…
EVERYONE is calling for this…Just like they called for a COLLAPSE/DEPRESSION in 2008.
What happened???
Instead of 1930 repeating…We had MASSIVE Government intervention and NO COLLAPSE.
Here’s what I think…
RIGHT NOW all this intervention is viewed as a BIG NEGATIVE…It’s spurred the Tea Party Movement, cleaned out an entire Democratic Congress, People HATE the intervention…WHY???
Because they have NO IDEA what the REAL ALTERNATIVE would have been. This isn’t a Rep/Dem issue. They BOTH decided to backstop the collapse…NOW, as the HERD always does…They TURN on the very people who SAVED THEM…Saved an entire economic system…Let me tell you folks…WE WERE FINISHED…DONE…OVER…If that intervention had not passed.
The IRONY???
What SAVED the US economic system is now viewed as a HUGE MISTAKE…Just as doing NOTHING in 1929 is NOW viewed as a colossal blunder.
I don’t think we have MASSIVELY HIGHER interest rates coming anytime soon…There’s not enough credit worthy USERS out there…ALSO…As ROOKIE and myself can attest…There are a LOT of people out there RIGHT NOW eating the banks LUNCH…They’re AFRAID TO LEND…WE’RE NOT…As a result, there is MASSIVE amount$ of HARD MONEY lending going on these days…Almost ALL OF IT at one time was the BIG BANKS profit drivers…NOW it’s MINE!!!
Let them raise rates if they’re that stupid…Guys’ like Rookie will cut their b@lls off and STILL make money hand over fist as guy’s like HIM become alternatives to traditional banks.
Massively Higher rates??? NOPE…Not happening.
BUT…If it DOES??? I already have a business plan in place to take advantage of that scenario. YOU should too.
Just my opinion.
RIGHT NOW all this intervention is viewed as a BIG NEGATIVE
not to me…
It was/is freakin’ awesome! Thanks Rookie…(the major indexes).
:beer
and with timmy applying the thumbscrews…it will only get better.