The Fed is destroying the home mortgage industry
May 2, 2022 23:24:51 GMT -5
Post by OmegaMan on May 2, 2022 23:24:51 GMT -5
The Fed is destroying the home mortgage industry as rate hikes due to ‘Bidenflation’ lead to 70 percent reduction in lending
Monday, May 02, 2022 by: JD Heyes
Tags: Bubble, CNBC, crash, economic collapse, economy, Federal Reserve, finance, financial industry, housing bubble, housing collapse, housing crash, Housing Market, housing market collapse, lending industry, mortages, property values, refinance, refinancing loans, risk
This article may contain statements that reflect the opinion of the author
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(Natural News) There is a reason why our founders abhorred a strong federal government with its own bank: Allowing centralized control over the country’s financial system would lead to greed, ineptitude, and disaster.
The Federal Reserve either refused to step in ahead of time or did not see the 2007 housing and financial collapse coming — either one is bad — and it now appears as though the Fed’s policies are about to cause the next housing and lending industry crisis.
Here’s the setup.
For the past two years, our country has seen some of the worst economic decisions made by some of the dumbest people on the planet: Members of Congress and the Biden administration. Ostensibly in response to the pandemic, lawmakers backed enduring lockdowns and business closures ‘to slow the spread’ of the virus, which did not happen anyway, regardless of how many times businesses were forced to shutter.
As a result, Congress felt compelled to pass successive “COVID relief” bills which flooded our economy with trillions of dollars, even as there were fewer goods and services to buy. And once Democrats controlled all lawmaking branches of government, they passed more bills that spent trillions more — all of which caused a massive spike in prices (call it “Bidenflation”). Since the feeblest president of all time took office, neither he nor his Democratic administration or Congress have done squat to bolster the supply chain and encourage more domestic production of goods so that the goods-to-money ratio fell, which would have brought inflation under some semblance of control.
Instead, Biden’s handlers have put the onus on the Fed to take on the responsibility of curbing inflation, so the central bank is doing that by raising interest rates, which is aimed at curbing spending, so theoretically, prices should begin to drop as fewer Americans spend money, thus allowing the money supply-to-available goods and services ratio to balance out.
Only, by raising rates, the Fed is killing off one of the country’s economic drivers: The housing and lending industry. So we’re about to see a repeat of the 2007-08 crisis.
Continued at link
Monday, May 02, 2022 by: JD Heyes
Tags: Bubble, CNBC, crash, economic collapse, economy, Federal Reserve, finance, financial industry, housing bubble, housing collapse, housing crash, Housing Market, housing market collapse, lending industry, mortages, property values, refinance, refinancing loans, risk
This article may contain statements that reflect the opinion of the author
Bypass censorship by sharing this link:
New
citizens.news/613347.html
(Natural News) There is a reason why our founders abhorred a strong federal government with its own bank: Allowing centralized control over the country’s financial system would lead to greed, ineptitude, and disaster.
The Federal Reserve either refused to step in ahead of time or did not see the 2007 housing and financial collapse coming — either one is bad — and it now appears as though the Fed’s policies are about to cause the next housing and lending industry crisis.
Here’s the setup.
For the past two years, our country has seen some of the worst economic decisions made by some of the dumbest people on the planet: Members of Congress and the Biden administration. Ostensibly in response to the pandemic, lawmakers backed enduring lockdowns and business closures ‘to slow the spread’ of the virus, which did not happen anyway, regardless of how many times businesses were forced to shutter.
As a result, Congress felt compelled to pass successive “COVID relief” bills which flooded our economy with trillions of dollars, even as there were fewer goods and services to buy. And once Democrats controlled all lawmaking branches of government, they passed more bills that spent trillions more — all of which caused a massive spike in prices (call it “Bidenflation”). Since the feeblest president of all time took office, neither he nor his Democratic administration or Congress have done squat to bolster the supply chain and encourage more domestic production of goods so that the goods-to-money ratio fell, which would have brought inflation under some semblance of control.
Instead, Biden’s handlers have put the onus on the Fed to take on the responsibility of curbing inflation, so the central bank is doing that by raising interest rates, which is aimed at curbing spending, so theoretically, prices should begin to drop as fewer Americans spend money, thus allowing the money supply-to-available goods and services ratio to balance out.
Only, by raising rates, the Fed is killing off one of the country’s economic drivers: The housing and lending industry. So we’re about to see a repeat of the 2007-08 crisis.
Continued at link
