Financial Update by Maurice Soussé

Interest rates are pretty flat from last Fridays email. The US is pushing China to cut interest rates as their economy continues to be sluggish. On the home front it looks like the FED has nixed the thought of quantitative easing 3 (QE3).

Although growth is “slower than we would like,” Dallas Fed President Richard Fisher told Fox Business Network, “it’s gaining momentum.”

“We will not support further quantitative easing under these circumstances because there’s a lot of money lying on the sidelines, lying fallow,” he said according to a transcript provided by the network. “We don’t need any more monetary morphine.” “The real problem in our country is job creation and prosperity,” he said. “And we need to get better fiscal policy to complement what we at the Fed have done, because it’s not working as effectively as it should.”

With rates near zero, pushing borrowing costs lower simply will not create more jobs, Fisher said. “I don’t see what more would do,” Fisher said. “And I especially could not justify it if the economy continues to improve along the path which has been indicated recently.”

Wow… that. To me it says “folks, we are finished cutting rates”. So, is this the bottom for rates? Only time will tell. I can tell you this, I don’t know if the intersection of low rates and prices could ever create a better opportunity to buy property. Even the Oracle (Warren Buffett) said he might buy a couple thousand properties.

Take a look at the 15 year fixed rates this week. They sure look great.

Quote of the week… “The longer I live, the more I am certain that the great difference between the great and insignificant is energy – invincible determination – a purpose once fixed and then death or victory”. – Sir Thomas Fowell Buxton

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