Thursday, September 8, 2011

Record Low Mortgage Rates

Mortgage rates this morning reached an all time record low at 4.12% for a 30 year mortgage.


With home prices still about 30% over valued and unemployment surging, who would possibly consider lending their money at record interest rates for 30 years?

The US Government.  Who now lends or guarantees close to 100% of the new mortgage loans in America.

The same government who pays for these mortgages by borrowing money in the form of US treasury bonds.  The same bonds which are also hitting all time record low rates.

The investment world, laughing at those silly enough to purchase dot com stocks in 2000 and condos in Miami in 2005, is now fully invested in US government debt.  They are sitting on an atomic bomb ready to explode.

Greek 1 year government bonds are closing in on 100% interest as the confidence backstopping the artificial market collapsed.  The same is coming soon for America whose balance sheet is almost identical, only with a few more zero's.

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