Kat Hak Sung
Manipulate long term interest rate
Wed Oct 12, 2005 19:46
207.200.116.199
333. Manipulate long term interest rate ( 8/12/05)
Fourteen months ago, when Federal benchmark interest rate was at 45 years low of 1%, the interest of 10 year bond (Federal treasure 10 year note) was 4.8% and the 30 year mortgage rate was about 5.6%. After Federal interest rate being raised from 1% to 3.5%, the 10 year bond rate is about 4.3% and the 30 year mortgage rate is about 5.8%. Either has little change or even has a drop.
To economic rule, long term interest rate always follows the track of short term rate. Now it is moving in a conflict way. Federal Reserve raised the interest rate 10 times, the median price of housing market goes to higher and higher. Economists puzzled. Even Alan Greenspan said that he does not have a good explanation why the long term interest rates fall when the Reserve has been raising short term rates.
Rare people know it's the work of Feds. (Inside group such like D.O.J., FBI and DEA) They hold a large quantity real estates so they resist any change that will influence rising house price. The tactic they used also include the following:
1. Keep the rate of 10 year Federal treasure note low by letting foreign countries (mainly Japan and China) buying a large quantities of US Treasuries. 10 year bonds is the main factor to influence the 30 years mortgage rate.
2. Expand the bond market of home mortgage. Japanese and Chinese government continually buy in the bonds issued by Gunnie Mae(US Government National Mortgage Association), Fannie Mae and Freddie Mac. Supply a large quantity of low interest fund to home mortgage company.
Japan is a puppet of US. It follows the order of Inside Group. China, has secret deal with Feds, collaborate in any side related to framed case.
3. Intimidate Freddie Mac, Fannie Mae to expand the home mortgage lending business. In 2003 and 2004, Freddie Mac and Fannie Mae suffered scandal of account manipulation and financial report problem. Top executives were ousted. As a result, in 2005, the two firms raise the ceiling of single family house mortgage from 333.7k to 359.65k. It said that will help consumers to buy high price house. It also flame the heated house market.
There is always a purpose when a scandal revealed. We learned it from Lewinsky scandal and Watergate scandal. And the result of scandal on Freddie Mac, Fannie Mae helped to create a housing bubble. It developed a potential crisis that in this April Greenspan had to urge Congress to restrict the multi billion-dollar holdings of Fannie Mae and Freddie Mac, warning that their huge debt could imperil US financial markets.
A housing bubble is formed. It will drag US economy into a quagmire in future. All for the interest of Feds.
Fourteen months ago, when Federal benchmark interest rate was at 45 years low of 1%, the interest of 10 year bond (Federal treasure 10 year note) was 4.8% and the 30 year mortgage rate was about 5.6%. After Federal interest rate being raised from 1% to 3.5%, the 10 year bond rate is about 4.3% and the 30 year mortgage rate is about 5.8%. Either has little change or even has a drop.
To economic rule, long term interest rate always follows the track of short term rate. Now it is moving in a conflict way. Federal Reserve raised the interest rate 10 times, the median price of housing market goes to higher and higher. Economists puzzled. Even Alan Greenspan said that he does not have a good explanation why the long term interest rates fall when the Reserve has been raising short term rates.
Rare people know it's the work of Feds. (Inside group such like D.O.J., FBI and DEA) They hold a large quantity real estates so they resist any change that will influence rising house price. The tactic they used also include the following:
1. Keep the rate of 10 year Federal treasure note low by letting foreign countries (mainly Japan and China) buying a large quantities of US Treasuries. 10 year bonds is the main factor to influence the 30 years mortgage rate.
2. Expand the bond market of home mortgage. Japanese and Chinese government continually buy in the bonds issued by Gunnie Mae(US Government National Mortgage Association), Fannie Mae and Freddie Mac. Supply a large quantity of low interest fund to home mortgage company.
Japan is a puppet of US. It follows the order of Inside Group. China, has secret deal with Feds, collaborate in any side related to framed case.
3. Intimidate Freddie Mac, Fannie Mae to expand the home mortgage lending business. In 2003 and 2004, Freddie Mac and Fannie Mae suffered scandal of account manipulation and financial report problem. Top executives were ousted. As a result, in 2005, the two firms raise the ceiling of single family house mortgage from 333.7k to 359.65k. It said that will help consumers to buy high price house. It also flame the heated house market.
There is always a purpose when a scandal revealed. We learned it from Lewinsky scandal and Watergate scandal. And the result of scandal on Freddie Mac, Fannie Mae helped to create a housing bubble. It developed a potential crisis that in this April Greenspan had to urge Congress to restrict the multi billion-dollar holdings of Fannie Mae and Freddie Mac, warning that their huge debt could imperil US financial markets.
A housing bubble is formed. It will drag US economy into a quagmire in future. All for the interest of Feds.
- REALITY-BASED VS. SELF-DELUSION —Bernard Weiner, Wed Oct 12 20:39
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