Ben Thinks No Better Job Numbers Until 2015

By
Real Estate Mortgage Broker with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Ben Thinks No Better Job Numbers Until 2015”

Federal Reserve chairman, Ben Bernanke is at it again, printing money to stimulate the economy in order to keep interest rates superficially low. There is no political motivation here?

Left to his own devices and the support of the current administration, their mission is clear. Do anything to re-elect Barack Obama. Anything, which includes printing money that we don’t have. Our debt is already 16 trillion dollars. Can you possibly imagine what is would go up too, if he was re-elected?

Where is all this money coming from?Besides the National debt, with no end in sight, gas prices above $4 per gallon with no end in sight, continued unemployment above 8% with no end in sight, a foreign policy in shambles with no end in sight and he still has a shot to win this election. I guess the supporters don’t really care about the debt that is being created for their children and grandchildren. Otherwise there is no explanation.

 

Fed Committed to $40B In MBS until Jobs Return; Low Mortgage Interest Rates May Continue Until 2015

By: The NicheReport

 

Great news for real estate investors, home shoppers and mortgage borrowers: Operation Twist and other efforts by the United States Federal Reserve to stimulate the economy will continue until at least 2015. The Fed is set to purchase record amounts of mortgage-backed securities to stimulate the employment and housing markets, and does not plan to raise interest rates for another three years.

The combination of Operation Twist with the assertive purchase of mortgage-backed securities points to a previously unheard-of stimulus by the government. The statement by the Fed’s Board of Governors indicates that they are committed to energizing the U.S. economy, at least until the employment situation improves. The central bank stated it will enlarge its holdings of long term securities with open ended purchases of $40B of mortgage debt per month. With regard to interest rates, the Fed announced that its “highly accommodative stance of monetary policy” will remain, meaning that the low Annual Percentage Rates (APRs) currently offered by mortgage lenders are set to continue.

Political Motives Observed

The global financial exchanges responded in different ways. Stocks gained along with gold and oil prices, but U.S. bonds and the dollar experienced losses. In Brazil, the Finance Ministry voiced concerns about the dollar’s weak outlook against the Brazilian real. In Capitol Hill, Republican Senator John Cornyn stated that the Fed’s efforts seem to be politically motivated in light of the presidential election campaign.

The Fed’s plans for the economy may seem like part of a maverick plan, but American voters are also being treated by seemingly radical proposals from presidential hopeful Mitt Romney. Analysts agree that both candidates are presenting unique ideas, but then again the U.S. economy has undergone major changes in the 21st century,

The Bottom Line for Housing

The American housing market has shown signs of resilience in 2012. Real estate investors have taken advantage of record low APRs to finance home purchases, and an uptick in median home prices has brought relief to more than a million homeowners who were previously in negative equity situations.

The Fed’s announcement gives home shoppers more time to look around with the confidence that mortgage interest rates will remain low for another couple of years. One of the intended effects of the Fed’s monetary policy intervention is to keep enticing home buyers with historically low mortgage interest rates, but that will always be contingent upon a reasonable unemployment rate.

image: Michael Elliott/freedigitalphotos.net

Posted by

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

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Topic:
ActiveRain Community
Location:
Connecticut
Groups:
Mortgage Solutions
Wake Up Brokers
Connecticut Professionals
LOAN OFFICERS WHO AREA SERIOUS ABOUT MAKING MORE MONEY
All About Mortgages/Mortgage Networking
Tags:
foreign policy
united states
housing market
presidential election
barack obama
unemployment
federal reserve
economy

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Ambassador
1,703,416
George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Joe, unfortunately for many it comes down to if there is a "D" or "R" after the name, and not about what they are doing.  Then they stand around scratching their heads wondering why things keep on going down the toilet.

September 21, 2012 05:33 PM
Rainmaker
1,574,002
Lou Ludwig
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO
Ludwig & Associates

Joe

We are living through very challenging times.

Good luck and success.

Lou Ludwig

September 21, 2012 06:59 PM
Rainmaker
916,421
Conrad Allen
Webster, Ma, Realtor
Re/Max Professional Asociates

Hi Joe.  No political motivation? Ha!  Our grandchildren are in big trouble.

September 22, 2012 04:02 AM
Rainmaker
1,757,391
Roy Kelley
Retired Real Estate Broker, Maryland Blogger

Enjoy the first weekend of fall with your camera in hand.

September 22, 2012 04:08 AM
Rainmaker
312,769
Frank Laisch
"The Insurance Guy"
Stewart Title Company

Joe, what they are doing is like throwing gas on a fire, the government is in shambles, It is very scary

September 22, 2012 04:29 AM
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Joe Petrowsky

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