Frankly, I think we need a rate increase...

[Wounded Bear]

banks and speculators have been playing with "free money" for far too long.

Now I have to figure out how to pay my bills.

[cinematicdiversions]

1. We need four or five of them

And we will get them.

[roamer65]

2. Rate increases equal probable recession.

Just keep that in mind.

[Scrivener7]

3. I agree, but it isn't going to help you pay your bills. A rate increase will make money

more expensive, which will nudge inflation up. However, it will allow you to earn better interest on your savings.

[Wounded Bear]

5. Savings? LOL...worried more about my credit cards...nt

[Buckeyeblue]

6. In theory rate increases drive down costs

Housing and car prices creep up in low interest periods because the consumer can pay more with a lower rate and still end up with an affordable payment.

Interest rates go up and consumers balk at paying a higher monthly payment, which will drive prices down. Most consumers think in terms of payments, not overall costs.

In my area we've seen the demand for houses decrease, so existing listing are starting to lower prices. I worry about this cluster of houses that were over paid for. Those buyers are already under water. Can anyone say, 2008?

[Wounded Bear]

8. A lot of the recent "housing boom" was speculators and hedge fund managers...

who were flipping, or starting rentals and AirBnBs. Sounds pretty 'bubble like' to me.

[inthewind21]

10. I've been saying that for over a year now

Many MANY people walked away from their houses in 09. Not because they couldn't pay for them but because they weren't willing to pay more for the house than it was worth. I have been asking for almost 2 years, who the hell is buying up property and way overbidding it to get the deal when there has been a global pandemic going on for 2 years now and millions were unemployed? I am now starting to see foreclosure listings. I give it 12-24 months and I believe the bottom is going to once again fall out of the housing market. ESPECIALLY if rates start getting raised.

[Buckeyeblue]

11. The good news is that variable rate mortgages have a lot more controls

The bad news is that people are going to see what other houses in their neighborhoods are selling for and feel like they were screwed. And once again people will walk. It might take a few years but I worry that it's coming.

[Takket]

4. I agree

A low interest rate doesn’t do you much good when you can’t afford a home because the cost of it is skyrocketing.

[roamer65]

7. From the perspective of Planet Earth...

The best birth control device is inflation.

Rising prices are helping to drive down population growth.

China’s population only grew by about 480k last year.

That said, we all can control the rate of inflation we personally experience.

Store brands instead of name brands, keep your present car on the road longer, refraining from unnecessary purchases, etc, etc.

[roamer65]

9. WIN.

Whip Inflation Now.

Who remembers that?