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I finally looked at mortgage rates for 30 year fixed the other day, first time in a while, and it's less than 5%...the reason housing is still WAY too expensive in many places is the availability of "cheap money"...I'm stumped. Is Obama such an idiot that their best idea is to double dip recession, instead of simply taking the short term hit so the economy can start to recover?
The Federal Reserve Chairman... Ben Bernanke... is responsible for setting the federal interest rates on all loans... including the money our government borrows. The only authority our President has is to appoint the chair position... but since those appointed are inevitably selected from a pool of those big banking houses who control most of the stock of the Federal Reserve... illustrates how Emperor Obama has no clothes.
Seeing as how Bernanke was originally selected by former President Bush and oversaw a tanking economy much ballyhooed by democrats... that the reprisal of his seat under President Obama hasn't been decried along with the continued recession... but instead scapegoated retroactively back to President Bush... suggests that partisanship still trumps substance in the democratic party.
Unfortunately our House has just voted down Rep. Ron Paul's audit the Fed bill... apparently congress is satisfied with the current state of the economy. Hopefully we prove to congress that we are not as satisfied with them.
The federal bank will not increase rates until the economy rebounds and job growth exists. If they move the rates up too soon, it will cause further damage, stall any pending recovery. Historically, they have moved it up too soon, much like in the great depression. They moved it up in something like 1934 and it caused another 6 years of recession/depression. The economy will only get a boost when spending returns and that will only happen when more money gets into the system and finds its way to consumers and corporations that are willing to spend the funds and have it circulate through the economy. Taxing and raising rates will only prolong and maybe even deepen the recession.
The only question i can answer successfully on here is, YES Obama is that much of an idiot :)
