IN THE NEWS
Commercial real estate delinquency rates are approaching pandemic levels, and 25-year-olds are concerned about their mental health. Is a mental health pandemic on the horizon? Jumbo mortgages for a purchase, as of this writing, are 6.75% for a 30-year fixed mortgage on your primary residence.
The Federal Reserve has bought $9 trillion worth of assets. When the Fed buys something, it wires the money for the bond or whatever it is buying, and the Fed does not have any money. So, when the Federal Reserve buys a $1,000,000 Treasury from an investor, it just wires the $1,000,000 and has added, created, or inflated the economy with $1,000,000. This is how the Fed pumped cash into investors’ pockets in the hope they would spend it. Now, the Fed is selling these same assets. When it sells the $1,000,000 for $800,000, for example, it takes a $200,000 loss on money that it invested. The issue is that the Fed can sell these bonds at a loss to itself without concern and drive up short-term interest rates.