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Is Interest Rate Trending Upwards?

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Is interest rate trending upwards?

Any one know?

i am not economist ..but looking from global where market is falling, it is more towards lower interest thrend.

But if you are looking for interest rates at car, credit cards, etc - it will never change :-)

 

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fed has pledged to keep rates low till 2013 at least.

they could very well stay there for some time.

however, a home loan is like 20 to 30 years. The million dollar question is whether rates will stay low for 2 to 3 decades instead of over 2 to 3 years.

 

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fed has pledged to keep rates low till 2013 at least.

they could very well stay there for some time.

however, a home loan is like 20 to 30 years. The million dollar question is whether rates will stay low for 2 to 3 decades instead of over 2 to 3 years.

Pledge is like signing a blank cheque, anyone also can pledge. What important most is the credit rating of the States. If they do have have concrete plans and actions to bring the nation's deficit down over the long term, if credit rating down, interest will up....

S&P 2012 GDP ESTIMATES:

China: 7.7%-8.2%

Hong Kong: 2.5%-3.0%

India: 6.8%-7.3%

Indonesia: 6.0%-6.5%

Japan: 1.5%-2.0%

Korea: 2.8%-3.3%

Malaysia: 4.4%-4.9%

Singapore: 2.0%-2.5%

Taiwan: 2.3%-2.8%

Thailand: 3.5%-4.0%

U.S.: 1.7%

Eurozone: 0.4%

Edited by bepgof
 

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US is already a bankrupt country with no ability to pay back its debts. The only thing holding its rating up is the reserve currency status. They are effectively holding other countries at ransom by getting those countries to buy its government debt.

The government debt is merely a promise to repay, which US can always print money.

Jim Rogers believes that US is bankrupt, Warren Buffett does not. I tend to lean towards Jim Rogers.

China will need a long time to catch up before it can overtake US as the reserve currency, i think i will live to see that day in my life. :)

Interest rates have to stay low till US manage to drag itself out of recession. Chances are, its gonna be hard. The US anaged to get out of the internet bubble with a housing boom. But now housing boom is burst, what do they have left to use? It may welll be the start of a long stage of stagnation. Just look at what happened to Japan after the housing bubble burst.

EU is in deep trouble, everyone cutting expenditure which means they are all spending less. So who is going to buy all the goods n services that China produces? Germany was said to have budget surpluses due to its EU partners buying from them. The partners are all cutting expenditure, so who is Germany going to sell to?

Every budget surplus is made possible by another country's budget deficit. Common sense has it that there is no way for all of us to have budget surpluses.

Hence, gloomy is the global outlook, and low interest rates are the weapons used by countries to boost the economy.

i will put my money on low interest rates for another 1.5yrs at least. But my disclaimer is that i do not put the money where my mouth is. I am on a fixed rate HDB loan. :P

 

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did jim rogers come to singapore ? If yes, he knows our govt is not a bankrupt.

Good analysis on US being a bankrupt.

Haha he is in Singapore with his daughter :sport-smiley-004:

 

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will US inflation cause interest rate to go up?

recently, it seem SIBOR and SOR rates have been going up...

is it better to take a fixed-rate mortgage loan now than a variable-rate one?

thanks1

 

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will US inflation cause interest rate to go up?

recently, it seem SIBOR and SOR rates have been going up...

is it better to take a fixed-rate mortgage loan now than a variable-rate one?

thanks1

Europe debt crisis caused Euro down, therefore USD up. Once USD up, interest rates up as well, a general rule of thumb. Too lengthy , as "long" as in the form of a text book of A4-size with one-inch thickness, to explain the inter-correlationship between those variables.

If you want interests to remain low, pray the USD currency goes down lah.

 

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Haha he is in Singapore with his daughter :sport-smiley-004:

Precisely, he already foresees the rise of the East and the fall of the West. Singapore is the "gateway" between the 2. His daughter is learning mandarin. Leaders lead followers. Leaders usually have far vision.

 

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Singapore, unlike US, finance its spending by CPF. So they do not owe other countries monies.

Singapore also tend to have trade surplus most of the time, and looking at how things are being run in this country, its unlikely that govt will overspend.

US govt have to spend on healthcare, SG healthcare is most likely a profitable business. :P

There has also been talks of another round of quantitative easing by US, where they will continue to print more money and driving up inflation. This will also keep interest rate low.

Given the current outlook, the one reason which could drive USD up is the bankrupt of euro where people will have no choice but to hold monies in USD as an alternative currency. The thing proping USD up is its status as a reserve currency, and not becos of the strength of the USD. Such a "flight to safety" is not uncommon in history, i.e. in times of asian financial crisis, war times, etc...

If im choosing a bank loan, i probably go for variable for a few years. as usual, my disclaimer applies. :)

 

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i need some advice here.

What is SIBOR and SOR rates although i heard it plenty of times.

Unforuntely my mortage has always been fixed for 3 years (followed by SIBOR variable before i refiance) therefore i do no really care about the terms above. Can anyone explain in layman term and what external factors will cause it to swing ?

 

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Didn't expect the disussion of mortgage loan interest rate trending invites such a fantastic insight into wealth of nations...

If that's the case I shall express more, based on what I heard, discussed, feel and observation of what is happening...unavoidable would touch on religion, pls pardon me if feel irritating.

Believed all of us know that the phrase "In God We Trust" is printed over the United States' coins and legal notes

http://en.wikipedia.org/wiki/In_God_We_Trust

http://www.taxfreegold.co.uk/ingoldwetrust.html

"In God We Trust" was adopted as the official motto of the United States in 1956.

What's the big deal of "In God We Trust" for a nation? What is the philosophy behind and its impacts for a nation? We all saw.

As time moves on and stops for no ones. Americans' heart changed and swayed towards "In Gold We Trust". They started the games of your loss is my gains...oil, gas, territorie expansion...

Till the recent, becomes "In Greed We Trust". Greed is good, they say, it is the motor that drives economic growth and human progress...We saw Lehman collapsed, subprime woes, QE1, QE2, currency depreciation (affects whole world).....

Next would-be? History tells our: when thing move to its extreme, it collapses, then rise of another, and the such repeats.

 

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i need some advice here.

What is SIBOR and SOR rates although i heard it plenty of times.

Unforuntely my mortage has always been fixed for 3 years (followed by SIBOR variable before i refiance) therefore i do no really care about the terms above. Can anyone explain in layman term and what external factors will cause it to swing ?

Ah Tee, if financial terms can be such easily comprehended in layman terms,there wouldn't be so many so-called "financial consultants" out there.

http://www.smartloans.sg/pages/the-choice-between-sibor-and-sor-rates

http://en.wikipedia.org/wiki/SIBOR

http://smp-consulting.com.sg/smpc/latest/sibor/sor-historical-trends

The rates fluctuation factors, "basically" and "technically" depend on:

- Borrowers' creditibilty, lenders' abilities and willingness.

- The "business operating conditions" of lenders and borrower. One of many examples, if got "war outbreak" at places where its business is operating at, it will sukar sukar up its prime rate at its discretion. Once prime rate is up, affect other rates liao...

- Competition among each.

- General market conditions

- Political conditions....

That is why there needs a "middle man" in between the so many borrowers and lenders, who says: Let's agree on this and that, and all follow the "middle man"'s instruction.

wow lau, to be frank, almost "every conditions", my explanation layman enough?

 

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