It is Fed Day (again) and the central bankers have to decide how on Earth to deal with a US economy that not only has gone on a glide path to a soft landing but for the longest time looked like it would not slow down at all.
It always baffles me why the UK and European banks don't simply issue 30-year fixed-rate mortgages. UK floating rate resets appear to be particularly disruptive events.
The energy thing is huge; we manage our household finances very tightly (especially now that I'm retired), but sharply higher gas and electricity prices in Germany have us economizing and forgoing discretionary expenses to an extent I never contemplated. Meanwhile, back in the States, it's business as usual for my retired parents, who just bought a new car.
I know. 30-year mortgages shouldn't be too hard. There is a swap market so banks can hedge their exposure and insurance companies and pension funds will gladly take the other side of the trade. But being here in the UK, banks seem to even be unable to get a 10-year mortgage on the books. It's ridiculous.
It always baffles me why the UK and European banks don't simply issue 30-year fixed-rate mortgages. UK floating rate resets appear to be particularly disruptive events.
The energy thing is huge; we manage our household finances very tightly (especially now that I'm retired), but sharply higher gas and electricity prices in Germany have us economizing and forgoing discretionary expenses to an extent I never contemplated. Meanwhile, back in the States, it's business as usual for my retired parents, who just bought a new car.
I know. 30-year mortgages shouldn't be too hard. There is a swap market so banks can hedge their exposure and insurance companies and pension funds will gladly take the other side of the trade. But being here in the UK, banks seem to even be unable to get a 10-year mortgage on the books. It's ridiculous.