Fed Raises Interest Rates Except On Existing Mortgages

Fed Raises Interest Rates Except On Existing Mortgages



FED Raises Interest Rates,​ Except on​ Existing Mortgages
The Federal Reserve took the​ unusually considerate step of​ raising the​ interest rate again while providing that banks could not raise the​ mortgage rates on​ people who already have mortgages with them.
While the​ banks called foul,​ the​ new head of​ the​ Fed commented,​ I​ think it’s time to​ be forthright about how the​ Fed manages the​ economy and the​ consequences of​ it .​
As you​ know,​ when the​ economy slows down,​ we lower the​ rate to​ stimulate it,​ which inevitably results in​ people going out and buying homes for the​ simple reason that they can now afford them .​
Then when the​ economy picks up,​ we raise the​ rates,​ which has always meant the​ mortgage rates go right up with it .​
So a​ lot of​ these people can no longer afford their homes .​
Well,​ it’s time to​ end the​ carnage and come to​ the​ rescue of​ these poor suckers .​
Banks can raise the​ rates accordingly but only on​ new mortgages.
Ruined,​ ruined – we’ll be ruined! a​ spokesman for Citibank wailed,​ as​ it​ declared record profits.
This will break us,​ a​ spokeswoman for Bank of​ America bemoaned.
Their comments soundly reminiscent of​ the​ cries that have until now echoed through the​ hallways of​ homes that would otherwise,​ in​ the​ wake of​ rising rates,​ be foredoomed to​ foreclosure.




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