No surprise for anyone who's been keeping watch. I think this sums it up pretty well:
$this->bbcode_second_pass_quote('', ' ')The action left the Fed's target for the federal funds rate, the interest that banks charge each other, at 4.25 percent.
PeakOil is You
Fed Raises Rate to 4.25%
First unread post • 2 posts
• Page 1 of 1
Fed Raises Rate to 4.25%
by cube » Tue 13 Dec 2005, 18:05:25
link
My cyrstal ball of doomerosity says we'll have 5% sometime next year and that should put the breaks on the real estate mania.
- cube
- Intermediate Crude
- Posts: 3909
- Joined: Sat 12 Mar 2005, 04:00:00
Re: Fed Raises Rate to 4.25%
by gego » Tue 13 Dec 2005, 19:44:46
The ten year treasury closed today at 4.535%.
My crystal ball says we run up a little more (maybe 5% by Feb, 2007), but then come down closer to 4% in October, 2007, before we start a long ziz-zag move up in interest rates on the 10 year bond to 13% by 2026.
I don't think until after October, 2007 the real estate market will correct from interest rates, but it may run out of steam before that just because the prices are much to high in relation to normal growth curves and in relation to incomes and because of marginal economic conditions.
My crystal ball says we run up a little more (maybe 5% by Feb, 2007), but then come down closer to 4% in October, 2007, before we start a long ziz-zag move up in interest rates on the 10 year bond to 13% by 2026.
I don't think until after October, 2007 the real estate market will correct from interest rates, but it may run out of steam before that just because the prices are much to high in relation to normal growth curves and in relation to incomes and because of marginal economic conditions.
- gego
- Heavy Crude
- Posts: 1265
- Joined: Thu 03 Mar 2005, 04:00:00
2 posts
• Page 1 of 1
Who is online
Users browsing this forum: No registered users and 1 guest