Wednesday, March 21, 2007

Interest Rates

Hey

I wonder if leaving the interest rates alone has something to do with the nation's high percentage of ARM mortgage holders? With all the news with the subprime market correction, you had to have a feeling that Mr. Bernanke would understand what adding a quarter point would do to the mortgage holders that are on the brink. You can look at parts of his speech at www.marketwatch.com.

The amazing thing is that interest rates are really low. There is also a ton of vacant housing still on the market. This market still has a ways to move down before the problem is corrected.

I have a feeling that other factors (underemployment, credit card debt, inflation, etc.) will tip this over the edge. I am looking at my Pepsi raising prices due to commodity price increases and am wondering when inflation and the housing problems will collide and cause the Fed some real problems related to interest rates. Maybe that time is now.


The Wikiwealth portfolio consists of the following:

Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.

Take care and happy investing!

2 comments:

J.M. said...

Nice blog! i just picked up some more pepsi, have been a shareholder for quite a few years. i think the stock is going to perform well this yr. i would suggest doing some posts on Calls, since its an area most people probably dont know much about.

Chisoccer said...

Hey JM

I will be happy to. How did you hear about this blog?