Operation Twist: Mortgages rate historical lows with operation twist from Federal Reserve.
It is absolutely amazing that mortgage rates continue to reach historical lows. As things happen to be and continue to contract, the Federal Reserve has gone ahead and decided to embark on Operation Twist. With this the Fed is looking at a longer term horizon for purchasing government debt. Given the dramatic challenges being faced in Europe investors are willing to purchase U.S. government debt even if the yields are astronomically low. The benefit of course, in an odd sort of way, is that mortgage rates continue to move lower. The challenge of course is that the market comes to expect that low rates will be a thing of the present and future. In other words, people’s appetites adjust to the circumstances and it is hard to get people to pay more once rates are this low.
Mortgage rates continue to make record lows:
I actually saw that a variety of adjustable rate mortgages of the 15 year variety were scraping the bottom of the barrel with rates in the 2 percent range. Talk about an odd sort of economy where a debt crisis is actually pushing rates lower for home buying.
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Does debt consolidation hurt credit
Staying in debt has become a way of life. As long as our life is stuck with credit card, chances of falling in debt will always be there. If you are struggling with your credit card debt, you may think about debt consolidation to settle your debt issues. Now, the issue pops up what about the impact of it on your credit status. While credit card helps to build up your credit status, consolidation may wreck that status. But, still it is better if compared to Bankruptcy. Let’s see how and to what extent debt consolidation could do harm to your credit.
When you enroll in debt Settlement Company to seek a way to pay off your debt in less than you owe, this could cause harm to your score. Debt consolidation process may take place through negotiation between your creditor and Settlement Company. Your creditor may agree to compromise some of your debt. But, when this fact is reported to the credit bureaus, this will have a negative impact on your credit score. Credit score represents your credit worthiness. Bank or lending institution checks this score before offering you loan. Therefore, it is a vital aspect of your finances.
Debt consolidation is by far the most convenient way of paying your multiple debts. The process restructures a payment method by stipulating a new payment term and amount. But, if you fail to pay off the agreed debt after consolidation, this could drop your score rapidly down. Therefore, you should be alert of consolidation scam. There are consolidation companies who do not pay your creditors even after getting money from your account. But, this will bring severe consequence on your credit score.
Despite the loopholes, debt consolidation is far better than bankruptcy. Filing bankruptcy could decrease your score by 150 to 200 points. The word BK stays on credit report from 7 years to 10 years. During that time, the possibility of getting a new loan is slim to none. On the other hand, after consolidating your credit score you can fix up your credit status faster.
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Devaluing the U.S. dollar Rome style. Inflation and diluting a currency is nothing new.
Devaluation is nothing new and great empires like that of the Romans used in their ascent toward the bottom. Little by little the value of the Roman currency was diluted by putting less and less silver in their currency. Eventually the currency was so diluted that faith in the money was lost. It is never a smart idea to purposefully slam your own currency even though political expediency in the moment may suggest it is an easy and tempting path. But the road of good intentions is paved with silver.
Take a look at the devaluation of the Roman currency and let us then measure it with our purely fiat based U.S. dollar:
Source: Zero Hedge
And then for the U.S. dollar:
Not exactly the direction you want to be heading.
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