Rates Remain Low, But Don’t Be Fooled
In This Issue  |
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| Last Week in Review: Don’t be fooled by today’s low rates…
Forecast for the Week: More housing news – plus, why the Fed’s upcoming meeting is so important. Weekly View: Kids and credit cards – what do you need to know? |
| Last Week in Review |
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| “NOBODY CAN GO BACK AND START A NEW BEGINNING…BUT ANYONE CAN START TODAY AND MAKE A NEW ENDING.” Those words by the poet Maria Robinson should hold a special meaning – and warning – for anyone thinking about buying a home or refinancing, especially in light of the article by Former Fed Chairman Alan Greenspan which hit the wires last week.
In his Wall Street Journal op-ed piece, Mr. Greenspan stated: “Don’t be fooled by today’s low rates. The government could very quickly discover the limits of its borrowing capacity.” He also added that the present low inflation and low long-term rate environment has fostered a “sense of complacency (within the government) that can have dire consequences.” What Mr. Greenspan is saying is that the government, rather than cutting budget deficits and showing fiscal restraint is taking advantage of this low rate and low inflation environment to accumulate more debt – and the consequences can be very bad…just look at Greece. Mr. Greenspan also said Treasury yields could spike, and in a hurry.. |
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