FED’s Cheap Skates Bar Cheaper Mortgages?

Letter to Ephesians: Trump is wrong about a 50-yr mortgage being a panacea for obnoxious housing prices, but right about the imperative need for the FED to cut its interest rate & for Congress to cut into the nation’s obnoxious deficit to make home ownership affordable.

The latest obsessive talking point for pols & pundits is the “affordability” of living now, as if that’s a new discovery. Never mind that inflation has been with us for many years & has been super-charged in the last 20 as the national debt has skyrocketed. As the WSJ’s editorial pages have noted, the Democrats’ great “ah ha” over the talking point has gotten Mr. Trump to “address” it, lest the anti-Trump MSM keep beating him over the head with it … hence, his recently floating the 50-year mortgage idea. But the editors are right in warning that, while the initial interest payments for new borrowers would be lower, they’d be paying a gazillion more over the life of the loan.

Where No. 47 has been spot on for years now, is his warning about how inflation cannot be gotten under control until Congress corals the bankrupting federal welfare state. The Obamacare nightmare is only one driver of the nation’s $38 trillion deficit (and counting) of course, but there’s untold other subsidies, the ever-expanding SNAP benefits being only one of them. He’s also right about another key factor in making new homeownership unaffordable for millions, i.e., the FED’s insistence upon keeping interest rates artificially high to supposedly fight inflation, even though the obvious irony in that policy is that high interest rates also feed inflation. The EU nations realized this months ago while the WSJ observes the USA’s “Federal Reserve is ‘driving in a fog.’” There’s even growing concern its leadership is wringing their hands over whether to reduce their rate by a measly quarter point in December. As Mr. Trump suggests, the cheap skates still cannot tell the forest from the trees about housing affordability.

Davd Soul