Wednesday, August 11, 2010

Refinance Now !

I know I am stating the obvious, but even if you have to put a bit of cash in, I urge anyone who can to refinance their home mortgage NOW. If you're a boomer, do a 15 year fixed rate loan and be debt free many years sooner. Rates are down to 4% - an historic lifetime opportunity.

The Fed is back to buying long term Treasury notes and bonds.

The US Treasury should be issuing these notes & bonds in large amounts. This will improve the US liability structure and spread out future refinancings.

US corporations should be issuing long term bonds, too, in large amounts. Corporate balance sheets can read levels of stability not seen since the 1950s.

The public should NOT be buying long term bonds or annuities. Wait.

Longer term, this historic opportunity to fund ... everything ... with long term, low cost funds will create a huge new bull market in a few years ... or sooner.


I will monitor the prices of TIPs and may cut back my allocation there soon.

Word of the Day

"Hypo-" - prefix [$10] before vowel or 'h', usu. "Hyp-"
Hypo- means 1. under (hypodermic); 2. below normal (hypoxia); 3. slightly (hypomania); 4. (chemistry) containing an element combined in low valence (hypochlorous).
Sentence: Prolonged exposure to cold, wet conditions can cause hypothermia, which is a body temperature below 95F.


Frosty said...

Krypto BUY BUY BUY today?

Frosty said...

Krypto must be out buying a camera with a flash...well played is a milkboner.

Bud said...

Bman do you think the USdollar is overvalued ??

Bud said...

hey you people consider steve slater a national hero ???

Frosty said...

anyone know where I can get an Al-Qaeda training app for my new iPad...thx in advance.