Dow falls nearly 1,000 points on rate hike fears and poor earnings from Verizon

[Plasmaball]

It wasn't just that. That was a short period. because of Reagan's tripling of the national debt and massive deficit spending, the fed had to keep rates high. I was looking at a house in 91-2 and the rate I was going to get was 8.75%. And that was paying it down with points.

I'm looking at 6.1 right now through my lender.
It's not amazing but it gets me out of the place I'm in.

 

[Plasmaball]

Any idea what rates were in the beginning of the '80's and where they were at the end?

They came down from 18% as time went. Just like a slow decent.

 

[Phys251]

The rate hikes are going to lead us to recession. The market is going to react adversely, money lending will become short sided and a decline in business will result. As money becomes less plentiful commerce will slow in all areas.

That's what I'm afraid of.

 

[gbg3]

Any idea what rates were in the beginning of the '80's and where they were at the end?

Yes, I just looked it up. They started the decade averaging almost 17% (on a 30 year fixed) in 1981 and gradually worked their way down over the decade, finishing the end of the 80s at about 10%.

 

[gbg3]

Rough day in the stock market today. Most interesting to me was the almost 25% increase in the VIX (volatility index). That move makes me think we have further to drop in the market. We'll see.

 

[reflechissez]

Does he have anything to do with the economy? The economy drives the Dow.

In the short-term, noise drives the Dow.

 

[reflechissez]

Rough day in the stock market today. Most interesting to me was the almost 25% increase in the VIX (volatility index). That move makes me think we have further to drop in the market. We'll see.

Your stock market/investment posts crack me up.

 

[uptower]

 

[Dittohead not!]

$ 700?

$390,145

-$15,454 (-3.8%)

But that is my trade account.....where i have my riskiest stuff

The other account was almost the same dollar amount loss , but a much smaller % loss....as it is mostly blue chip dividends that just reinvest auto

Its only a paper loss.....only hurts IF YOU SELL

And i put in 3 buy orders after the close.....i like equities on sale even if the economy is going to slow

This is the time to buy. Buy low, sell high.

 

[Dittohead not!]

I understand the reasoning and economics behind that, but it seems counterintuitive doesn't it? Bringing prices down, yet with a higher interest rate appears cancel each other and does nothing to make it more affordable.

The only thing that will make housing more affordable is building more houses. Supply and demand.

 

[HangLow]

This is why it's so important to avoid runaway inflation.
There is no pain-free method to address it.
It's all just a question of whether the significantly higher rates are
going to drive the economy into a recession or just a slow-down.
How'd you like to be someone looking to buy their first home later this year?

​

 

[NatMorton]

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That’s nice, but how do socialist banalities add to the conversation?

 

[NatMorton]

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We’d settle for him not making things worse, thank you.