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Get ready for higher gas prices and mortgages rates

SheWolf said:
Too much money in the economy is why the Fed is raising interest rates...
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No, the FED is raising interest rates because they cant keep them at zero forever. Today it is 1.75% which is still historically low. These increases were planned, not the result of tax cuts :roll:
 
American said:
You're wrong about all of it. But I'm getting used to see liberal heads explode on a daily basis. Get used to seeing a lot toes being stepped on, it's 50 years over due.
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Back you guys were supporting GWB, you had your heads thrust so deep into the sand you couldn't criticize him until the very end of his presidency. Trump isn't going to be a very good president when this is all over. By that time, you will have ruined your political party and have two of the most unpopular presidents in your fold.
 
Fletch said:
No, the FED is raising interest rates because they cant keep them at zero forever. Today it is 1.75% which is still historically low. These increases were planned, not the result of tax cuts :roll:
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I have an undergrad in economics and have studied the supply and demand of money and monetary policy. The interest rates were low because we were coming out of a recession, and the banks were lending money at lower rates to encourage growth. The interest rates were due to increase, however, the tax cuts have been predicted to cause inflation which is another reason the rates would be increased. It was the wrong tax cut at the wrong time, considering what kind of economy we had. Most other countries used their economic growth to pay down their debts, instead, America created more. I am not predicting the end of the world but I am saying Trump isn't making good economic decision The Fed is expecting high deficits and inflation and is adjusting it's policy accordingly.
 
SheWolf said:
I have an undergrad in economics and have studied the supply and demand of money and monetary policy. The interest rates were low because we were coming out of a recession, and the banks were lending money at lower rates to encourage growth. The interest rates were due to increase, however, the tax cuts have been predicted to cause inflation which is another reason the rates would be increased. It was the wrong tax cut at the wrong time, considering what kind of economy we had. Most other countries used their economic growth to pay down their debts, instead, America created more. I am not predicting the end of the world but I am saying Trump isn't making good economic decision The Fed is expecting high deficits and inflation and is adjusting it's policy accordingly.
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No, they have been planing these increases for years.
 
MTAtech said:
Get ready for higher gas prices and mortgages rates



Both will raise costs for consumers and will make financing the federal debt more expensive. Coupled with additional tariffs and an immigration policy that is hurting farmers and low-end labor, this is all a drag on the economy -- but conservatives will tell us that the magic elixir, tax-cuts, will make the economy boom.
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You mean the tax cuts that significantly reduced government revenue right before passing a Bill that significantly increases government spending? Add that contradictory gem to your list.

But, as a conservative poster here will obtusely declare..."what's wrong with keeping more of your hard earned cash in your pockets?" Durp.
 
SheWolf said:
Too much money in the economy is why the Fed is raising interest rates...
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It is the Fed that put too much money in the economy by lowering interest rates.

Price controls don't work. Not even price controls with money itself. The Fed always winds up closing the door after the horse is gone.

The damage to the economy is done during 'easy money' periods from the Fed. That's what starts the speculation that eventually causes the next crash.
 
Fletch said:
No, the FED is raising interest rates because they cant keep them at zero forever. Today it is 1.75% which is still historically low. These increases were planned, not the result of tax cuts :roll:
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Price controls don't work. They never have.

The Fed manipulating the price of money is what causes the crash.
 
Into the Night said:
It is the Fed that put too much money in the economy by lowering interest rates.

Price controls don't work. Not even price controls with money itself. The Fed always winds up closing the door after the horse is gone.

The damage to the economy is done during 'easy money' periods from the Fed. That's what starts the speculation that eventually causes the next crash.
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Quantitative easing is not price control
 
American said:
There was no need to go off the rails to blame conservatives again for all the world's problems. But I'm not surprised.
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This is Alt-Right talk, a kellyannconwayism, these silly little distractions that are pumped out in a lame attempt to paper over reality and hide the ugly realities.
 
camlok said:
This is Alt-Right talk, a kellyannconwayism, these silly little distractions that are pumped out in a lame attempt to paper over reality and hide the ugly realities.
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You don't know what you're talking about all the time.
 
And it's slowly happening.

Higher oil prices has enabled a bit more drilling, and a bit more job security for oil workers.

Sent from my LG-H910 using Tapatalk
 
Fiddytree said:
And it's slowly happening.

Higher oil prices has enabled a bit more drilling, and a bit more job security for oil workers.

Sent from my LG-H910 using Tapatalk
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I think oil has good support up to between $90 and $100 a barrel,
beyond that, it will be pushing against the very hard ceiling of man made fuel technology.
The refineries are now separate profit centers from the exploration/recovery side.
When the greater profits are to be had from making their own feedstocks from surplus energy, CO2 and water,
I think they will follow the greater profits.
More and more companies are admitting they are working on this technology.
https://ecosummit.net/uploads/eco12_220312_1515_carlberninghausen_sunfire.pdf
Oil will still have many uses, but not as fuel, and it's demand will fall.
There will still be fuels from fossil oil for many years, because some existing wells have very low production costs,
and so are profitable at say $40 a barrel.
 
Into the Night said:
It is the Fed that put too much money in the economy by lowering interest rates.

Price controls don't work. Not even price controls with money itself. The Fed always winds up closing the door after the horse is gone.

The damage to the economy is done during 'easy money' periods from the Fed. That's what starts the speculation that eventually causes the next crash.
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Are you really arguing that lowering interest rates during the Great Recession, when inflation was nonexistent and unemployment was high, was an incorrect policy?

You also are unwittingly undercut a principle of conservative economic thought -- “printing money” is supposed to be dangerously inflationary. But the Fed kept interest rates down for 9 yrs. So if you believe that the Fed has been keeping rates artificially low for years on end -- where’s the overheated economy?
 
MTAtech said:
Get ready for higher gas prices and mortgages rates



Both will raise costs for consumers and will make financing the federal debt more expensive. Coupled with additional tariffs and an immigration policy that is hurting farmers and low-end labor, this is all a drag on the economy -- but conservatives will tell us that the magic elixir, tax-cuts, will make the economy boom.
Click to expand...

Higher mortgage rates are because the economy is doing so well the Federal Reserve Chairman decided to raise interest rates, and he promises to raise them 3-4 times each year for at least this and next year unless something changes. That's a good thing for the economy, not a bad thing. Furthermore, gas prices are going up because of the sanctions on Iran. You can decide whether that is good or bad, but blaming tax cuts is just idiotic.
 
FreeWits said:
Higher mortgage rates are because the economy is doing so well the Federal Reserve Chairman decided to raise interest rates, and he promises to raise them 3-4 times each year for at least this and next year unless something changes. That's a good thing for the economy, not a bad thing. Furthermore, gas prices are going up because of the sanctions on Iran. You can decide whether that is good or bad, but blaming tax cuts is just idiotic.
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The economy is a little better but it isn't doing appreciably better than under Obama. Don't buy the propaganda. Below is p% change of real GDP:

fredgraph.png


Interest rates rise for numerous factors, such as, expectations of inflation, and very importantly -- government crowding out private borrowing. That is directly attributable to the rising deficit.

Gas prices also move based upon a variety of factors. I think gas prices are rising because of instability due to Trump scuttled the Iranian nuclear deal.
 
MTAtech said:
The economy is a little better but it isn't doing appreciably better than under Obama. Don't buy the propaganda. Below is p% change of real GDP:

fredgraph.png


Interest rates rise for numerous factors, such as, expectations of inflation, and very importantly -- government crowding out private borrowing. That is directly attributable to the rising deficit.

Gas prices also move based upon a variety of factors. I think gas prices are rising because of instability due to Trump scuttled the Iranian nuclear deal.
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The Federal Reserve Chairman specifically cited the expectation that we would break 3% GDP growth, and he found it highly unlikely we wouldn't get there. 2017 was almost a full % higher than 2016. The further we get from the recession, the harder growth becomes, so I think 2017's numbers are pretty dang good. Gas prices are up because sanctions on Iran take billions of barrels of oil off the market.
 
MTAtech said:
Are you really arguing that lowering interest rates during the Great Recession, when inflation was nonexistent and unemployment was high, was an incorrect policy?

You also are unwittingly undercut a principle of conservative economic thought -- “printing money” is supposed to be dangerously inflationary. But the Fed kept interest rates down for 9 yrs. So if you believe that the Fed has been keeping rates artificially low for years on end -- where’s the overheated economy?
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Yes. Price controls never work. The Great Recession was CAUSED by the Fed. The damage they did was the 'good times' before the recession itself actually hit. Those 'good times' quickly flared into speculation.
 
FreeWits said:
Higher mortgage rates are because the economy is doing so well the Federal Reserve Chairman decided to raise interest rates, and he promises to raise them 3-4 times each year for at least this and next year unless something changes. That's a good thing for the economy, not a bad thing. Furthermore, gas prices are going up because of the sanctions on Iran. You can decide whether that is good or bad, but blaming tax cuts is just idiotic.
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Nope. Interests rates are the price of money. Price controls never work.

The economy is doing well in some areas. Speculation is picking up in others. The damage done by the Fed has already been done for this cycle. Raising interest rates now is again trying to close the barn doors after the horse is gone.
 
MTAtech said:
Are you really arguing that lowering interest rates during the Great Recession, when inflation was nonexistent and unemployment was high, was an incorrect policy?

You also are unwittingly undercut a principle of conservative economic thought -- “printing money” is supposed to be dangerously inflationary. But the Fed kept interest rates down for 9 yrs. So if you believe that the Fed has been keeping rates artificially low for years on end -- where’s the overheated economy?
Into the Night said:
Yes. Price controls never work. The Great Recession was CAUSED by the Fed. The damage they did was the 'good times' before the recession itself actually hit. Those 'good times' quickly flared into speculation.
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What I read is an excuse from someone who believes that all problems are caused by the government.

Let's be clear, the Fed didn't put a gun to banker's heads and make them give out no-income, no-asset, no-credit-check loans. The bankers willingly did that because they knew they didn't take a risk, because mortgage rating organizations were rating junk loans as AAA and these bankers immediately sold the loans as derivatives. The Fed didn't tell financial institutions to throw caution to the wind and stop instituting the most cavalier banking standards.

Here are key things we know based on data. Together, they present a series of tough hurdles for the proponents of the theory that the government was to blame (in your case, specifically that it was the Fed.)

The boom and bust was global. Proponents of the narrative above ignore the worldwide nature of the housing boom and bust. It is highly unlikely that a simultaneous boom and bust everywhere else in the world was caused by the U.S. Fed.

Nonbank mortgage underwriting exploded from 2001 to 2007, along with the private label securitization market, which eclipsed Fannie and Freddie during the boom.
The vast majority of subprime mortgages -- the loans at the heart of the global crisis -- were underwritten by unregulated private firms. These were lenders who sold the bulk of their mortgages to Wall Street.
 
Into the Night said:
Nope. Interests rates are the price of money. Price controls never work.

The economy is doing well in some areas. Speculation is picking up in others. The damage done by the Fed has already been done for this cycle. Raising interest rates now is again trying to close the barn doors after the horse is gone.
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Yeah, yeah, the Feds are responsible for everything bad. Just another very conservative fool that pretends to know something they know nothing about. Come back to me when you want to actually say something, because you didn't say anything here.
 
FreeWits said:
Yeah, yeah, the Feds are responsible for everything bad. Just another very conservative fool that pretends to know something they know nothing about. Come back to me when you want to actually say something, because you didn't say anything here.
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Can't disagree there. Someone saying, "Interests rates are the price of money. Price controls never work," reminds me of the gibberish that Hans Solo blurted out in the first Star Wars movie, "You've never heard of the Millennium Falcon? It's the ship that made the Kessel run in less than twelve parsecs." Well, parsec is a measure of distance, not time, so this makes no sense.

Likewise, saying that "interest rates are the price of money," is nearly as nonsensical. Interest rates are the cost of money when borrowing (or earnings when lending) money. The "price of money," is related to what that money can buy and is measured by things such as the CPI. Now, the CPI, interest rates and inflation are relate. Interest rates need to be high enough to cover the expectation of inflation, since the money being paid back is "less valuable" due to inflation. This makes the attack on the Fed even more absurd. During the period that the Fed kept interest rates low, there was very little inflation and for a time, no inflation. There is no reason to have higher interest rates when inflation is low and there is high unemployment.
 
iguanaman said:
LOL I will blame the deficit ballooning tax cuts, our violation of the Iran nuclear agreement, the irresponsible move of our embassy, and threats of a trade war then. They all have served to depress the dollar, raise interest rates and oil prices. But you are right it is not Conservative policies it is the self-serving traitor in the Whitehouse that is responsible. The sooner he is gone the better.
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Show me the signed copy of the so called agreement (which was a treaty) and I'll agree with you.

Tell me why acting on a law that has been on the books for decades (and places our embassy in the host nation's capitol) and I might agree with you.

Tell me why allowing people to keep more of what they earn is a bad thing.

President Trump is a lot of things. Obama he isn't.
 
jimbo said:
Show me the signed copy of the so called agreement (which was a treaty) and I'll agree with you.

Tell me why acting on a law that has been on the books for decades (and places our embassy in the host nation's capitol) and I might agree with you.

Tell me why allowing people to keep more of what they earn is a bad thing.

President Trump is a lot of things. Obama he isn't.
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First, tax cuts that require borrowing to pay for the tax-cut is not "allowing people to keep more of what they earn," for obvious reasons.
Second, framing the Iran deal on whether it was a treaty, should have been a treaty, etc., is missing the point. Prior to Trump abrogating the deal, all parties were living up to the terms and that made the region more stable. That added stability kept oil prices down. Now, the region is more unstable, driving oil prices up.
Third. Trump sure isn't Obama, unfortunately.
 
MTAtech said:
First, tax cuts that require borrowing to pay for the tax-cut is not "allowing people to keep more of what they earn," for obvious reasons.
Second, framing the Iran deal on whether it was a treaty, should have been a treaty, etc., is missing the point. Prior to Trump abrogating the deal, all parties were living up to the terms and that made the region more stable. That added stability kept oil prices down. Now, the region is more unstable, driving oil prices up.
Third. Trump sure isn't Obama, unfortunately.
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Oil prices have dropped 3 consecutive days. Haven't checked yet today. That must be because of President Trump's policies. Gas went over $4.00 during the Obama presidency. $4.00 before the non treaty treaty. Under $3 after. Oil does not fluctuate because of the President.
 
jimbo said:
Oil prices have dropped 3 consecutive days. Haven't checked yet today. That must be because of President Trump's policies. Gas went over $4.00 during the Obama presidency. $4.00 before the non treaty treaty. Under $3 after. Oil does not fluctuate because of the President.
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I don't watch price changes day-by-day but they are up recently. Oil accounts for 70% of the cost of a gallon of gasoline and can fluctuate due to policies.

In 2012, oil did spike due to both the Iranian dispute with the West over its nuclear program and issues with refineries. Oh, I don't see where gasoline prices were over $4.00/gal. during Obama's presidency.

fredgraph.png
 
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