Grim warnings from Powell and the Fed push rates on home loans to new low

Even as building slows, the Fed is pumping purchasing power into housing. Short supply plus increased purchasing power could put upward pressure on prices. Of course, it all hinges on demand … will buyers be willing to take on a mortgage in such an uncertain jobs market? After all, even a zero percent mortgage payment is hard to make with no income. … continue reading, click here >>

Fed Warns of Significant Hit to Asset Prices If Crisis Grows

Another not-so-subtle clue in the news … Fed chair Powell warns that commerical real estate values could plummet because of crisis … if “financial system strain’s re-emerge”. Notice Powell makes a distinction between the economy and the financial system. Health crisis > Economic Crisis > Financial System Crisis (credit markets and banks).

The economy needs to generate revenue to make payments on the ginormous debts. If debts go bad, asset values collapse taking bonds and banks with them. Our guess is the Fed will print as many dollars as it takes in an attempt to stop it. Is the dollar strong enough to do it? What if it’s not? Get ready … to continue reading, click here >>