Krugman: Mortgage Rates Still Too High
Despite having come down considerably in recent weeks, mortgage rates are still too high, says Paul Krugman in a recent blog post. Why too high? Well, the spread between 30-year mortgages and 10-year Treasurys historically is around 150 basis points. And now? About 300 bips. Krugman’s prescription: “Declare that Fannie and Freddie are backed by…
Despite having come down considerably in recent weeks, mortgage rates are still too high, says Paul Krugman in a recent blog post. Why too high? Well, the spread between 30-year mortgages and 10-year Treasurys historically is around 150 basis points. And now? About 300 bips. Krugman’s prescription: “Declare that Fannie and Freddie are backed by full faith and credit, and if that doesn’t work, have the Treasury borrow on their behalf.”
I’m not confused, Johnny.
What’s worse, Obama says he plans to increase business taxes too — a double whammy to job growth and the economy.
Wake up and smell the coffee. It’s all about appeasing his base and getting re-elected to a second term so he can earn a billion dollars “consulting” and giving speeches like Bill Clinton did after serving two terms.
And I’m not talking about raising taxes on billionaires, though I don’t see that as a good idea either. I’m talking about raising taxes on folks like myself who operate small businesses, yet employ folks who have families to support.
It may be a small percentage of folks statistically who make over 250k/yr, but we’re the ones who run companies and give people jobs.
That short term chart is just too short term.. That’s my point. Take profits (if you have some) and get back in when it tests the lows again.
whats tbt , i am starting to look at shorting us treasuries by using pst.
dude we have higher lows and higher highs since 11-12-08 but your right 900 is a critical point. But my short term chart has been correct once again. I am thinking of going out of gold and into silver which in my opinion is the better value…
IronBalls, you need to spend more time on Krugman’s blog if you think he’s trying to re-inflate the housing bubble. In particular, see his next post:
http://tinyurl.com/6vv3h8
And if you don’t know what Hoocoodanode means, you really need to start reading Calculated Risk.
true enough I don’t think rate increases are the medicine that this patient needs. At least not now. I would put that off till we get out of this mess. It would be hard to keep this economy from going lower if we started to increase taxes on the very people you expect to boost consumption.
Unless it breaks 900, it’s still lower highs and lower lows since the March 18 peak!!!!!!!! Your short term rally from the Nov 13 low won’t hold if it doesn’t go through 900.
Start looking at TBT.
true enough, but if i was in this ponzi scheme alot longer than 9 years I would be as rich as him. The guy has lost all credibility. And to me that is mother of all things. He is no longer credible and he owes peter schiff a million dollars on a bet they made on tv. Art laffer has been completely wrong on all this. You would figure he would be right on some things. But no. Hey take a look at that gold chart. Still looking good.
there are critics of every economic theory Snark… that’s a nice cut and paste from Wikipedia though!!!!!
The market is not going to respond well to tax inccreases of ANY sort.