Interest Rates getting ready to crush

I do not expect most of this forum to get this post, because most of you are lifeless dregs playing online poker in 3rd world countries. But for those of us that still live in the US and believe its a beautiful country, friends we have a problem. Interest rates are going up and fast. The horrendous debt spending from Obama is coming home in a terrible way.

This will devastate the economy. Home foreclosures will surge. Unemployment will be at 11% in three years. Civil unrest will happen in most major cities. Possible regional conflicts even in this hemisphere might occur.

You heard it here first:

http://www.businessinsider.com/stron...te-hike-2015-3

lol

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Originally Posted by Tony

I do not expect most of this forum to get this post, because most of you are lifeless dregs playing online poker in 3rd world countries. But for those of us that still live in the US and believe its a beautiful country, friends we have a problem. Interest rates are going up and fast. The horrendous debt spending from Obama is coming home in a terrible way.

This will devastate the economy. Home foreclosures will surge. Unemployment will be at 11% in three years. Civil unrest will happen in most major cities. Possible regional conflicts even in this hemisphere might occur.

You heard it here first:

http://www.businessinsider.com/stron...te-hike-2015-3

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Not gonna happen. Forget about foreclosures. Everyone on 30 yr fixed rates not those shitty ARMs that were popular back in the real estate bubble. I don't think the fed will be raising rates any time soon given oil prices, lack of inflation and the strength of the dollar. I wouldn't be surprised if they lowered them to negative at some point. Government does need to reign in the spending that's for damn sure because rates won't stay down forever. Or will they?

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Originally Posted by Pooh

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Originally Posted by Tony

I do not expect most of this forum to get this post, because most of you are lifeless dregs playing online poker in 3rd world countries. But for those of us that still live in the US and believe its a beautiful country, friends we have a problem. Interest rates are going up and fast. The horrendous debt spending from Obama is coming home in a terrible way.

This will devastate the economy. Home foreclosures will surge. Unemployment will be at 11% in three years. Civil unrest will happen in most major cities. Possible regional conflicts even in this hemisphere might occur.

You heard it here first:

http://www.businessinsider.com/stron...te-hike-2015-3

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Not gonna happen. Forget about foreclosures. Everyone on 30 yr fixed rates not those shitty ARMs that were popular back in the real estate bubble. I don't think the fed will be raising rates any time soon given oil prices, lack of inflation and the strength of the dollar. I wouldn't be surprised if they lowered them to negative at some point. Government does need to reign in the spending that's for damn sure because rates won't stay down forever. Or will they?

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For once I agree with Pooh.. Impending doom? nah we be straight nigga

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Originally Posted by Pooh

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Originally Posted by Tony

I do not expect most of this forum to get this post, because most of you are lifeless dregs playing online poker in 3rd world countries. But for those of us that still live in the US and believe its a beautiful country, friends we have a problem. Interest rates are going up and fast. The horrendous debt spending from Obama is coming home in a terrible way.

This will devastate the economy. Home foreclosures will surge. Unemployment will be at 11% in three years. Civil unrest will happen in most major cities. Possible regional conflicts even in this hemisphere might occur.

You heard it here first:

http://www.businessinsider.com/stron...te-hike-2015-3

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Not gonna happen. Forget about foreclosures. Everyone on 30 yr fixed rates not those shitty ARMs that were popular back in the real estate bubble. I don't think the fed will be raising rates any time soon given oil prices, lack of inflation and the strength of the dollar. I wouldn't be surprised if they lowered them to negative at some point. Government does need to reign in the spending that's for damn sure because rates won't stay down forever. Or will they?

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Exactly. Everyone who was in a shitty loan has refi'd out of them at record low rates into traditional 15 and 30 year loans with payments they can afford. Most everyone tightened the belt the last 5-6 years and paid down their unsecured debt as well. Bottomset gonna Bottomset, though.

You people need to see the forest through the trees. Most homeowners live pay check to pay check. When interest rates go up, their ability to borrow to pay their bills will go south and fast.

There is a subprime entity that has existed that have owned homes for years. When interest rates go up, they are finished, forget home loans, they cannot even pay that without borrowing. You have to factor in credit card debt, college loans, car loans, medical bills, etc...its a house of cards.

You people need to listen to me otherwise you are going to lose a lot of money.

I actually agree with pooh..they said they would keep these rate indefinitely..I don't see commercial investments moving away from the stock markets..precious metals have been stable or consistent for a while now..but thanks for bringing this subject up. My next influx of investment dollars will go to metals, just in case..

Hey Tony, would you suggested cashing in some of my over performing stock that has seen gains to transfer to metals or ,a hold and wait position.

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Originally Posted by Tony

You people need to see the forest through the trees. Most homeowners live pay check to pay check. When interest rates go up, their ability to borrow to pay their bills will go south and fast.

There is a subprime entity that has existed that have owned homes for years. When interest rates go up, they are finished, forget home loans, they cannot even pay that without borrowing. You have to factor in credit card debt, college loans, car loans, medical bills, etc...its a house of cards.

You people need to listen to me otherwise you are going to lose a lot of money.

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The dollar is stronger than ever
The ecb is starting to print money, devaluing the euro
If rates go up in June, most Americans will be happy because the cash they have been saving will actually earn a respectable return.

I'm planning my euro vacation as I type.

Hold off on stocks, invest a little in metals..use cash to pay off creditors and deposit in savings(money market)..,that's the action I'll take..now this thread is good.

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Originally Posted by Tony

I do not expect most of this forum to get this post, because most of you are lifeless dregs playing online poker in 3rd world countries. But for those of us that still live in the US and believe its a beautiful country, friends we have a problem. Interest rates are going up and fast. The horrendous debt spending from Obama is coming home in a terrible way.

This will devastate the economy. Home foreclosures will surge. Unemployment will be at 11% in three years. Civil unrest will happen in most major cities. Possible regional conflicts even in this hemisphere might occur.

You heard it here first:

http://www.businessinsider.com/stron...te-hike-2015-3

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Sounds like 1979 - 1982.

It sucked.

Interest rates are going up. It won't happen fast and it won't be out of controll.

Interest rates are tied to inflation. If inflation goes up, interest rates will follow. As interest rates are currently rock bottom, the only was is up, baby.

Tony,

A few questions, I noticed you describe deficit spending by Obama as a major cause why single him out? What about congress, Bush, Clinton, other Bush, Reagan, state governments, etc.

More importantly, you should tell us what to do with our money. Do we switch to cash? Tax free muni Bonds? Treasury Notes? Do we short the S&P in the futures market to hedge our stocks and 401 ks?

Please help.

Peace,

Hozer11

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Originally Posted by Hozer11

Tony,

A few questions, I noticed you describe deficit spending by Obama as a major cause why single him out? What about congress, Bush, Clinton, other Bush, Reagan, state governments, etc.

More importantly, you should tell us what to do with our money. Do we switch to cash? Tax free muni Bonds? Treasury Notes? Do we short the S&P in the futures market to hedge our stocks and 401 ks?

Please help.

Peace,

Hozer11

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I'll help.

If you think interest rates are staying the same buy MORL
If you think interest rates are going up by BDCL
If you think the market will take a dump by SH

Yo pooh, moral has a div yield of 23percent?

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Originally Posted by thesparten

Yo pooh, moral has a div yield of 23percent?

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MORL is a leverage ETN (exchange traded note) offered by UBS. It is a 2x MREIT. Very risky but also very lucrative. The downside risk is mitigated by the huge yield.

I own 1k shares of MORL and BDCL. Buying 1k shares MLPL monday.

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Originally Posted by Pooh

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Originally Posted by thesparten

Yo pooh, moral has a div yield of 23percent?

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MORL is a leverage ETN (exchange traded note) offered by UBS. It is a 2x MREIT. Very risky but also very lucrative. The downside risk is mitigated by the huge yield.

I own 1k shares of MORL and BDCL. Buying 1k shares MLPL monday.

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Anyone else ready?

The funny thing is when everyone was telling Marty to buy boats, jeeps, drugs and booze I was telling him to put all his money in MORL and forget about it. The money would double every four years on yield alone. Everyone said I was being a miserable cunt but I was the only one actually looking out for him. How'd that work out? Now he's broke with a dead dog.

By the way. If he did what I told him to and the stock price didn't even move up one penny in ten years his 20k is worth 168k. Tight life.

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Originally Posted by herbertstemple

Sounds like 1979 - 1982.

It sucked.

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i enjoy thoughts of the apocalypse as much as the next guy.

But '79-'82? We are a long way from that. Most guys here wouldn't believe this chart is real. There is no way to fathom what this was like.



The awful winter weather virtually stopped all real estate sales in Northeast. If you can't see the yard and your roof is leaking and every weekend is a fresh foot of powder.

An interest rate hike (and the rush to lock in) combined with Spring is gonna trigger a stampede of pent up demand for Real Estate the likes of which we have never seen.

But people have been preparing for the inevitable hike for a long time. Stay loose and liquid. Cause like all government programs there are always unexpected consequences.

Who knows? But the guy who is in cash and is light on his feet may take advantage of the guy who is invested in the status quo.

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Originally Posted by Sanlmar

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Originally Posted by herbertstemple

Sounds like 1979 - 1982.

It sucked.

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i enjoy thoughts of the apocalypse as much as the next guy.

But '79-'82? We are a long way from that. Most guys here wouldn't believe this chart is real. There is no way to fathom what this was like.



The awful winter weather virtually stopped all real estate sales in Northeast. If you can't see the yard and your roof is leaking and every weekend is a fresh foot of powder.

An interest rate hike (and the rush to lock in) combined with Spring is gonna trigger a stampede of pent up demand for Real Estate the likes of which we have never seen.

But people have been preparing for the inevitable hike for a long time. Stay loose and liquid. Cause like all government programs there are always unexpected consequences.

Who knows? But the guy who is in cash and is light on his feet may take advantage of the guy who is invested in the status quo.

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I was replying more to OP's forecast of the next 3 years.

It was a messed up time.

Carter called it a Crisis of Confidence. He was right, the country lost its confidence, then the hostage crisis hit, then the rescue mission. USA could not do anything right for a few years. People are a lot weaker now than they were then, not nearly as tough today.

The best thing that happened then was the USA winning a hockey game.

A stretch like that now would really fuck this country up.

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Originally Posted by herbertstemple

I was replying more to OP's forecast of the next 3 years.

It was a messed up time

Carter called it a Crisis of Confidence. He was right, the country lost its confidence, then the hostage crisis hit, then the rescue mission. USA could not do anything right for a few years. People are a lot weaker now than they were then, not nearly as tough today.

The best thing that happened then was the USA winning a hockey game.

A stretch like that now would really fuck this country up.

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You reminded me just how people felt about the U.S. and the government from 1966-1980. Not a lot of love to say the least. There was a lot of good reason.

Pretty fucked up times.

Something like an Olympic hockey game was a monster win for a country that had sucked for so long.

http://www.theguardian.com/commentis...land-austerity

http://www.bankofengland.co.uk/publi...eycreation.pdf

National debt is 104.5% of GDP.

So yeah, Wiggy time to close the spigot (fire hose) just a teeny bit.

At the core of it, we had an exceptionally great run.

Good times are always followed by lean times. Boom and bust. It is just how it works. Excess gets wrung out.

The failure of the SEC allowed the good times to turn into crazy riches for any fool.

We never paid for that. Not properly. It hurt a little but not in proportion to the decades of prosperity.

We borrowed and bailed out those who fucked up. We gave away free money so no one would feel any pain.

Sooner or later we WILL pay. It's like someone who is beginning to get caught in a lie. You can dodge and spin and borrow but eventually it all catches up with you.