finance.yahoo.com
Federal Reserve pushes interest rates above 5% for first time since 2007The Federal Reserve's latest policy decision on Wednesday could mark the end of its rate hiking campaign, the most aggressive from the central bank since the 1980s.
The pain seems limited to real estate so far. The only tool the Fed has to fight inflation is to raise rates and choke off the money supply. I was a young whippersnapper in the 80’s, full of piss and vinegar, I didn’t really understand 14% mortgage rates. The number of layoffs was incredible. The auto industry got hammered as auto loans became more expensive and harder to get. Sound familiar? It will. For now , the economy seems to be humming pretty good.
Daaaamn. The hammer is coming down on the regional banks. Bad for builders and industries that rely on the small commercial banks. Good for the big banks, only a few left, who will be given sweetheart deals to “rescue” them. Shenanigans are happening as the government tries to steady the market. Chase had 800 staffers working thru the weekend to win the “auction” for First Republic assets. And only the good assets were bought leaving the risky crap out. Bank of America forgot to do that when they bought Countrywide. B of A is still fighting lawsuits from bad loans Countrywide made.