DISQUS

TomJoad · 1 year ago

Well..you know...the pendulum and all, they have to stick it to the few that are left, because they chose to pretend people without jobs, income, or collateral were not credit risks. The rest of course will have to do their part now, and eat higher rates to make up for it.

I mean, you wouldn't want bankers, wall streeters, and all involved have to pay for infantile bad judgment now would you?

Maybe the government has a vested interest too, since the more people that default and become homeless, the better chance they can get some new recruits for the forever war.

Mike_H · 1 year ago

Disgusting. "Profit Uber Alles" -- even as the Titanic of an economy is sinking, they are still trying to make a profit off of the drowning passengers in steerage.

RepubAnon · 1 year ago

Giving money to the "deserving rich" - no link to campaign donations...

NapalmGod · 1 year ago

Part of this whole problem is that banks are required to have a certain ratio of loans vs. cash on hand.. With the subprime crash, a lot of the banks are finding that they're closer, if not under, that ratio. The normal 'fix' for this situation is to stop writing loans until the proper ratio is reached. Doing that, of course, would crash the economy because so many of the banks are either close to being, or are, under water ratio-wise right now.

I suspect that's why they're not passing it along, to build up their reserves using the difference between the fed rates and the consumer rates.

jr · 1 year ago

deregulation caused this mess and the free marketers are calling for more deregulation to fix it

aquarius2 · 1 year ago

Last week I noted that the Fed rate is 2.25% to banks YET mortgage rates by banks is around 5.5%up to 7%. I know the mortgage rates are not tied to the Fed rate but historically when the Fed rate drops most lenders also drop mortgages rates. Right now the banks have kept the same rate or even increased it despite the fact they are getting extremely low rates from the Fed. So the consumer is being sucker punched twice, once through tax funded money pouring into the system and then again by paying the banks high rates.

ep · 1 year ago

FYI- Mortgage rates are tied to the bond market, not the fed rates. Stock market goes down, bond market goes up, mortgage rates go up. As we're headed or already in a recession, I suspect the bond markets/Mortgages will continue to go up.