Fed raises rates

zubs said:
GREENSPAN missed the credit default swap problem that ran up realestate to astronomical levels.  He left right at the peak in 2006.  If the head of the federal reserve couldn't see the problem back then, I don't believe anybody can.

Everyone is a retard working off of luck and pretending it's skill.


FYI: $1 billion dollar lottery this week!!!..get some.
Click to expand...

Agreed, and reminds me of my first RE purchase (east coast) in 2003. My oldest friend was buying at the same time (also east coast), and he is a lawyer working for one of the major NY banks. He chose a fixed rate slightly higher than my 4.375 ARM, saying he didn't want the interest rate risk. Meanwhile his job at the time  was focused on creating derivatives. I'm not sure how long he waited to refi as interest rates declined over the next several years, but as someone in the middle of creating the mess I was surprised he didn't have a more informed outlook when choosing that fixed rate loan.
 
Wall Street's view on Trump's talk of firing Fed Chair Jerome Powell: 'Utter madness'

Late Friday, Bloomberg News, citing four unnamed sources, reported that Trump has discussed firing the central bank head.

With the Fed embarked on a campaign to tighten monetary policy, the president has repeatedly attacked Powell.
In an email to CNBC, Greg Valliere, chief global strategist at Horizon Investments, branded the idea as "insane" and "utter madness."
https://www.cnbc.com/2018/12/22/wal...madness-on-possibly-firing-jerome-powell.html




 
OCtoSV said:
zubs said:
GREENSPAN missed the credit default swap problem that ran up realestate to astronomical levels.  He left right at the peak in 2006.  If the head of the federal reserve couldn't see the problem back then, I don't believe anybody can.

Everyone is a retard working off of luck and pretending it's skill.


FYI: $1 billion dollar lottery this week!!!..get some.
Click to expand...

Agreed, and reminds me of my first RE purchase (east coast) in 2003. My oldest friend was buying at the same time (also east coast), and he is a lawyer working for one of the major NY banks. He chose a fixed rate slightly higher than my 4.375 ARM, saying he didn't want the interest rate risk. Meanwhile his job at the time  was focused on creating derivatives. I'm not sure how long he waited to refi as interest rates declined over the next several years, but as someone in the middle of creating the mess I was surprised he didn't have a more informed outlook when choosing that fixed rate loan.
Click to expand...

I don't know if they could not see it coming rather that that they didn't want to see it.  Greenspan and others leading the Fed in early 2000s were all about lassiez-faire economics and the economy was booming.  It was validating their theory on economy and essentially their live's work.  It is no different than those who believe that tax cuts and smaller government are the key to economic success.  They will do it no matter what or where the economy is at.

A lot of people saw it coming...no one wanted the ride to end or to be Cassandra.
 
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