Interest Rate Alert: U.S. Rates Will Rise

[No DUplicitous DUpe]

Interest Rate Alert: U.S. Rates Will Rise

This week alone, the U.S. government borrowed $118 billion, which a few months ago would have been a new all-time record. But now it's becoming a typical amount.

This Monday, it will borrow $57 billion and it will continue to borrow heavily for there is no end to its massive shortfalls. Investors are becoming increasingly concerned.

If you intend to finance or refinance a home or other expensive property, please do it soon. And do it long term fixed rate.

As for real estate values, imagine what will happen to them as mortgage rates rise.

The Federal Reserve will fight this but unless the U.S. government gets its revenues in line with its expenses, it will fail.

Dear reader, this is meant simply as a helping hand to you and not a critique of the U.S. government. I hope you find this information beneficial and I wish you well.

http://sane-ramblings.blogspot.com/2010/03/alert-us-interest-rates-will-rise.html

[Skittles]

1. so I'll finally get some interest on my savings?

[gratuitous]

2. Whoa, waitasecond, don't be talkin' crazy

So, you socked away some money while others were throwing gobs of cash at the real estate bubble? Well, you're going to be penalized right along with the rest of us. And by "us," I don't mean the Big Finance Boys, they're too big to fail, you know.

[No DUplicitous DUpe]

4. Yup, but you'll pay more for everything...

It's called inflation, and your savings interest won't make up for it.

[divvy]

10. wrong again einstein ....

Where did you learn economics?

[TheWatcher]

14. Delete.

Let the shills sing their songs.

[upi402]

3. k/r did you post this in the economy thread?

Might go well there too.

[No DUplicitous DUpe]

6. No I didn't...but I will...

Thanks!
:hi:

[muriel_volestrangler]

5. I rarely post this, but ... 'well, duh'

Interest rates have been at an all-time low for a long time. It's basically impossible for them to go down. The only thing that could stop them rising at some time is the collapse of the entire world capitalist system.

[Subdivisions]

7. Which is not all that unlikely these days. n/t

[No DUplicitous DUpe]

8. I'm sure when they do, it will catch some people off guard...

But thanks for commenting
:hi:

[divvy]

9. There is too much financial misconception on this board

I have never in my life read so much "authoritative commentary" on finance that is nothing more than bullshit or lies than I have on DU. This post is just one more case of it. If you don't have a clue, then try talking about something else.

If you want to know the basis of refinancing national debt, it has to do with the average duration of all outstanding debt, and nothing more. It means that about 53% of all U.S. debt will mature in about 3 years or less. To make it simple to undestand, there is a buttload of republican debt that is maturing over the next 3 years and must be refinanced by a democratic administration.

here, read this:

Assumptions used in the next 3 charts:
�� Net financing projections for FY 2010-2020 are based on OMB FY 2011 Budget
estimates. Future residual financing needs are spread proportionally across
auctioned securities and are derived from hypothetical auction sizes. Excluding 30-
year TIPS, initial sizes are based on announced coupon amounts as of December
31, 2009 and the outstanding level of bills on December 31, 2009. The initial size
for 30-year TIPS is based on the average announced amount for 20-year TIPS in
2009.
• Projections exclude cash management bills.
• Projections assume no change to future issuance patterns.

Using the above assumptions, over the next 10 years:
• Average maturity of total outstanding and average maturity of issuance settle to
approximately 68 and 79 months, respectively.
• The percent of debt with 3 years or less to maturity is projected to decline to 53%.

This is from page 7 of the treasury report here:

http://www.ustreas.gov/offices/domestic-finance/debt-management/quarterly-refunding/02-01-2010/Monday%20chart%20template%20Feb%202010_Final.pdf

It is on the Treasury website here: Click on "refunding charts"
http://www.ustreas.gov/offices/domestic-finance/debt-management/quarterly-refunding/

[abelenkpe]

11. There was a post on zerohedge

a couple of days ago reporting that the Fed intends to keep interest rates at record low levels until 2013.

Why would one want to refinance a home destined to be underwater if this guys guess was correct?

Sounds more like helping a bunch of banks not homeowners.

[earth mom]

12. So this is the thanks the people get for bailing those fucking bankers out.

:grr:

[upi402]

13. apt term

should be in the financial terms dictionary from now on.