Posted by NCLisa on 7/25/06 6:24pm
Msg #135228

The FED is supposed to raise interest rates again!

They plan on raising the interest rates again next week. News today say there is a huge backlog of new homes for sale. They are declaring that the new homes bubble has burst. Instead of selling new homes, buyers are cancelling their contracts. Even investors are cashing out.

I am so sick of hearing what a great economy we currently have! I guess if your wealthy, it's a great economy. I think it bites!!!! Sorry.....just needed to vent!

Reply by Jahari Davis on 7/25/06 7:55pm
Msg #135243

Don't get me started Lisa. This economy is sick and its going to get worse with current world events unfolding. Oil is at record highs because of it and there's absolutely no desire or motivation to stop it. I dont know how much more we are supposed to take. A squeamish, inexperienced Fed is causing rates to spike and home sales, home starts, and remodelling are flat as a result. I'm very curious to know how businesses like Home Depot, Menards, and Lowes are doing. If they are reporting flat sales, we are in serious trouble. Wages are flat and good paying jobs are practically non-existant. If you're wealthy you have tax cuts to fall back on. If you're not you have nothing to fall back on. I am so sick of this I could just *blankity blank blank blank*!

Reply by Paul_IL on 7/26/06 12:37pm
Msg #135368

Jahari,
You really do have NO CLUE what you are talking about do you? Rising oil prices are due primarily to countrys like China and India whose energy consumption has been steadily increasing causing a higher demand.
Rate spikes???? You really should pay more attention. Rates have only done a gradual rise and sales and starts are not flat in the majority of areas. Areas such as the east and west coasts are now experiencing corrections in there markets as they were artificially inflated. Interest rates are still lower than they were 6 years ago. In regards to tax breaks I say YES because I am better equiped to spend my money than the government.

Reply by Jahari Davis on 7/26/06 3:05pm
Msg #135407

Actually, I do Paul but in my response to defend my stance I would need to bring politics into the equation and most people (many on this board) refuse to understand and cannot handle the notion that politics and world events play an important part in world financial markets and interest rates, the latter having the greatest impact on our field of expertise. Interest rates determine if a person buys a home, sells a home to escape an ARM, or refis their mortgage. War, famine, and disease affect these markets greatly as does how we respond to them. I dont care what anyone says or ideology they subscribe to. If they dont believe that, they are living outside of reality. Give me your email, I'll send you my comments. I will not post them here to be attacked again.

Reply by TitleGalCA on 7/26/06 9:43pm
Msg #135456

***Give me your email, I'll send you my comments. I will not post them here to be attacked again.***

Praise God.

Reply by Paul_IL on 7/27/06 10:54pm
Msg #135668

Actually you do not! This is not a political fact it is an economic fact of supply and demand that China and Indias energy use has grown and keeps growing and that is the Major reason for the continual rise in energy prices. It is a matter of refining capacity which is at roughly 98%. The US has not built a new refinery in over 30 years. The reason for this is political and everytime an oil company attempts to build a refinery the liberal environmentalists come out in force filling lawsuit after lawsuit to block it cause it might be bad for the environment. This point is also a Fact that has been well documented.
Perhaps you have had your head somewhere but we have experienced record growth in our economy. Interests rates have risen but they were at record lows and everyone knew that it could not have remained that way indefinately.
Housing starts: Where shall I begin, we are still above the numbers for 2003. The numbers cannot be compared to last year or o4 which were at record highs. New Homes sales have fallen from record years but when you compare them to non-record years they are still good. Sales are slow on the coasts but still good in the middle of the country as the Midwest was never hit with the artifical price increases that afflicted the East and West coasts.


Your main point of interest rates determining if people buy homes is true for how much house they build or buy but back when rates were 16-18% people still bought and sold homes. War, damine and disease have been around for a very long time so that arguement does not really hold much water.

Facts and Just the Facts........

Reply by Jahari Davis on 7/28/06 9:24am
Msg #135739

So you mean to tell me that in the last 3 years, 6 years even that China's and India's demand for energy just popped up and that alone forced crude over $75/barrel? Thats preposterous. Go to CNNfn and look at the commodities reports. Look at the graphs. Look at the numbers. Those do not lie. That is evidence that there is blatant price gouging going on in the oil markets. War, famine and disease have in fact been around for ages, however when there is war in a part of the world that affects oil distribution and supplies you cannot discount that as a significant factor. Follow the logic in the numbers.

Reply by Paul_IL on 7/30/06 12:55am
Msg #136064

I have a degree in Finance so there are much more reliable sources to get your facts and figures than CNN. Look at the production figures verses demand! Price per barrel of oil is only a part of the price of a gallon of gas. With refining capacty at near max and as demand increases supply does not.....that makes gas prices rise because demand is higher than supply!

Current supply of oil from the middle east has not been greatly reduced and the US gets the majority of its oil elsewhere. What does that tell you Jahari? It helps to have your facts straight when you look at graphs. There has been price gouging in oil since day one of that industry due to human nature and greed but that is only a very small percentage.


Did you take an economics class in college that you stayed awake for?

Reply by TitleGalCA on 7/26/06 9:43pm
Msg #135455

Re: The FED is supposed to raise interest rates again! Paul

***You really do have NO CLUE what you are talking about do you?***

No, Paul he doesn't. But..clueless and all, he's willing to shove his left politics down everyone's throats on a notary forum, over and over again.

*** You really should pay more attention. ***

Sadly, that is a useless suggestion. The smothering and oppressive nature of his beliefs have a life of their own.

Reply by Jahari Davis on 7/27/06 2:45am
Msg #135507

TG, I wasnt talking to you...

I didn't post with any agenda TG. I posted about financial markets and how world events and political decisions affect our profession. If you actually read my posts instead of hopscotching around my posts reading lines here and there and cutting and pasting to fulfill your need for attention by way of an "ah-ha gotcha" moment, you'd see that I said whatever ideology you subscribe to, the financial markets are effected by world events and the financial markets are a good indicator of whether something is brewing or not. I'm not going to challenge you to think anymore. I'm not going to challenge your politics, your ideology or your beliefs anymore, because there's no point. Anything I post, you always seem to find a way to reach and make it a political post. You've proven time and again you are incapable of welcoming a challenge in thought through reasoned dialog. That said, with the cliff in full view, I hope you enjoy the dive and remember to adjust your blinders.