7% interest rate?!

[DCLMP]

Right… we just had an election. Don’t know about anyone else, but did you hear anyone talk about the debt?

If there's one thing both parties agree on is their right to overspend. They don't care. Nothing will change.

 

[piccolopat]

I would be more worried about overpaying for a house now. Even at a high rate, a mortgage can always be refinanced as market conditions change. If you overpay for a house, you are still on the hook for that cost even if house prices fall. Since the pandemic, many areas have seen prices go up considerably. I would expect a lot of those homes will reset lower at some point. If you are not sure that you are getting a good price based on historical norms in your area, I would suggest waiting so you don't end up being underwater with your mortgage.

 

[goofyernmost]

It doesn't really matter when you continue to spend and print money out of think air. I have a deeply held belief that debt based economies will always fail.

High debt can come from two directions. (One) would be irresponsible spending and (Two) would be without fair and equal balanced income. A governments income is from taxes and when you rely only on lower income sources you will have a deficit of epic proportions. So it is irresponsible spending coupled with irresponsible distribution of income sources. You make the connection as to where that got it's start.

 

[dvcgirl67]

If there's one thing both parties agree on is their right to overspend. They don't care. Nothing will change.

This is true....but citizens are going to start to care about one facet of the mess soon....Social Security. The government has 12 years to address that once and for all or there will be a massive cut in SS....down to 77%.

And back to the current mess, yesterday's market jump on one month of slightly cooling inflation is proof that there's still way too much money sloshing around. And these big "up" days....makes the Fed's job of attempting to unwind the "everything bubble" that much harder.

 

[DCLMP]

The debt is growing faster than the GDP. The Fed can’t do much. They can’t raise rates without breaking the debt market. They’ll continue to try to inflate away the debt, and the government will continue to increase spending.
The cpi doesn’t include food or energy, but it helps with the narrative the fed needs to ease the hikes.