Interest Rate Mortgages

RonPaul2012.com http DailyPaul.com http CampaignForLiberty.org http Failed Fed Policies Prolong the Agony by Ron Paul The Federal Reserve’s interest rate price-setting board, the FOMC, met last week. They will continue to set the federal funds rate at well below 1%, and plan to keep it low until the end of 2014. That’s a year and half longer than they planned when they met just last month. Chairman Bernanke says they are keeping interest rates so low for so long because the economic outlook warrants it. The fallacies in their reasoning would be amusing if they weren’t so dangerous. The Fed wants to keep the price of money at essentially zero — in other words “free” — to boost the economy. But the boost they are attempting won’t get here for another three years. That’s not a recovery. And we’ve already tried this tactic. That’s how we got into this mess in the first place: with interest rates artificially low for a very long time. Free money doesn’t stimulate growth, as Japan’s two lost decades clearly show. Artificially low interest rates only serve to punish saving, distort market signals, and cause further malinvestment. They also do nothing to address the only real solution to our economic woes: liquidation of the bad debt that hangs around the neck of the world’s economy, preventing recovery. Artificially low interest rates merely ensure that we remain a debt-financed consumer economy guaranteed to end up with a weaker economy and higher prices. What baffles me even …

CNBC Jan 27, 2012. Here is our boy, dumber than a sack of bricks Petey prostituting his stupidity on CNBC again. Errr… hello… Planet Earth to Peter Schiff pulling his own pud on Mars…Chairman Bernanke just announced the Fed would keep interest rates low until 2014…. which part of that statement don’t you understand, idiot?! For Peter Schiff’s fellow economic illiterates or cult followers, who don’t understand how the Federal Reserve System works: www.federalreserve.gov money.cnn.com

The RBI has increased interest rates 13 times since March, 2010, to contain inflation and India Inc has been demanding a cut in the rates to arrest declining economic growth. ibnlive.com

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The Reserve Bank of India (RBI) cut the cash reserve ratio (CRR) by 50 bps to 5.50 per cent which will be effective from January 28 and held repo rate steady at 8.5 per cent. ibnlive.com

Shopkeepers in the Ugandan capital Kampala are striking on protest over the cost of high-interest loans which they say are driving many of them out of business. Business owners say the bank loans have left them “working for nothing” and forced them to close their shops. They say losing more money is the only option left to show their frustration. The central bank, however, says nationwide interest rate rises last summer, when the entire region was suffering high inflation due to a global surge in oil prices, has made lowering rates impossible. Al Jazeera’s Malcolm Webb reports from Kampala. Business owners in the nation’s largest city say the high interest rates on bank loans have left them “working for nothing” so closing their shops and losing more money is the only option left to show their frustration. The central bank, however, says nation-wide interest rate hikes last summer – when the entire region was suffering high inflation due to a global spike in oil prices – has made lowering rates impossible. Al Jazeera’s Malcolm Webb reports from Kampala.

currency-collapse.com www.youtube.com Video illustrates how home prices will continue to fall in the coming years. I advise people to sit back and wait for prices to bottom out and then step back into the market. Gold & Silver are still the best investments right now and I believe that if you put your money in the metals that you will be able to grow your wealth considerably and then be able to purchase real estate and extreme discounts compared to current prices. Video uses hypothetical example of “John Smith” and how he is affected when interest rates rise just one percentage point. I strongly believe that interest rates will rise to much higher levels from their current rates and this will cause real estate prices to fall even more.

Watch more Capital Account @ www.youtube.com twitter.com twitter.com Our word of the day today is “Deposit Facility,” specifically as it relates to the ECB. A deposit facility is a place where qualifying financial institutions can make overnight cash deposits for a risk free, but extremely low rate of interest. This interest rate represents the lowest rate at which banks will lend to each other, overnight, and it is one of the key interest rates to watch. It is currently at .25%. So, it’s basically, the deposit facility is the bank for the banks. It is where banks deposit their money. Now, what is most important to note is that deposit facility usage at the ECB has been making new highs, reaching 453 billion euros yesterday, despite the latest LTRO which was suppose to give European banks the money they needed to start buying higher yielding sovereign debt and cheap prices. Free money. Well…it didn’t work so well. Banks used the longer term refinancing to offload risk to the ECB, taking the cash in order to fund existing asset holdings and guard against future write downs. Basically, the banks look scared, and they have no intention of lending cash out to make a spread, regardless of how large that is, when the risks on their balance sheet are so large.

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Nawar Naji – Toronto Mortgage Broker: How to adjust your mortgage for higher interest rate environment to save thousands of interest dollars and shave years off the mortgage amortization