Fannie Mae-No Politics (FNMA)

[Donotunderstand]

While I am extremely sympathetic to the plight of those who need 4% CDs and 5% on average seven year bond ladders -- extremely

HOW CONVENIENT that such a bright broadly knowledgeable man left out

Autos being bought with five years of ZERO interest

Autos being leased at seriously crazy low amounts (e.g. corolla is down 50 bucks a month in 18 months to 149 a month) - precisely because the builder and the dealer can borrow at near zero

and for us -

LOW mortgage rates --- especially on five year auto convert to another 25 year or another 15 year mortgages !!

And - not to forget people like me (so my cards are on the table) with a large HELOC I pay interest only on ---- and how that is about 6-8K less expensive for me now per year - than at other times

There is a consumption and borrowing side that is winning - yes at the expense of the savings/investment for the five year side

But when interest rates are 7% on a two year CD and choking car sales and home sales and costing jobs --- will the next letter be praise for the nice amounts savers can earn -- or will he then bash the FED for the cost to the economy of semi high interest rates

Two sides to this coin