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[nimblebear]

You have to admit, we've had a pretty darn good run of lower and lower, improbably lowest, rates with which to refinance for a number of years now. I'm sure somebody somewhere has done the calc's as to what this has meant for the American economy to keep extending, despite wages that have stagnated, and unemployment that has skyrocketed, only to be diminished by millions just falling out of the market in seeking any job whatsoever. And I'm sure there are even more shocking numbers of people who have been essentially using this refinancing as means to supplement and extend well beyond what their paycheck used to cover long ago, but then between so many unemployed periods of time, allowed them to maintain a lifestyle that requires 2 and 3 times what they may actually be making now, IF they even happen to have a job. So now the time has come, where even the Fed has too large of a balance sheet to continue QE much longer, and as such because of that, whether the Fed likes it or not, rates ARE going to rise. We've never experienced before a situation where rates will rise uncontrollably. The 1980s was the closest, but that was a forced rising to control what was felt at that time to be out of control inflation. This time however rates are going to rise, and do so at an unpredictable pace, with unpredictable spikes. So suffice it to say the serial refinancing is now all but all over. This IS significant in so many ways, as to be countless. People are going to not only be stuck in their homes for a long long long time to come, but generally speaking as well, they no longer have any means of cushion at all. 401s are pretty much cleaned out, and for the people who have them, it ain't anywhere close to enough to retire on. Can we envision hyperinflation with this scenario ? Do we now assume massive home asset deflation ? Do we dare assume or even glance at a currency implosion, where the dollar drops precipitously ? I would suggest that for anyone who has the means, whether it's a 401, stocks outside a 401, extra cars, and probably cash im the bank to the extent where its half the FDiC $100k insured limit, to take any of that needed and just pay off that low interest rate debt, and completely get out of all debt. Why ? Because its my belief that not only will we see Cypress type bail ins, we are going to see some extraordinary situations where banks are going to literally take away people's homes in order to obtain any level of cash or capital they can, and it will be for anyone and everyone who doesn't have a job, even if they happen to be making payments on time with whatever they have in savings. After that, it will be people with the lowest amount of equity. Foreclosed homes where people have been living payment free, will be targets immediately for banks to oust the occupants. They've recently been expediting this process and opening the flood gates, whereby they were tolerating a lot of this due largely to the free money from the Fed. That gig is over by sometime in 2014. Houses that had been empty and in shadow inventory have been heading into a more rapid phase of being put back onto the market, or sold as a package of homes to "investors" who then rent them. Thats going to really accelerate soon, with these rising interest rates. Families who have 2 income earners will be the next target, if one income can't support the payments. This is pretty much just as bad if not worse than bail ins. You've seen what banks have gotten away with in terms of all the subprime fraud, MBS repackaging fraud, so kicking people out of homes who are now pretty much done with refinancing is the next inevitable outcome. You think NSA and what little you've heard about all the phone data accumulation is surreal, and the Snowden leaks, you ain't seen nothing yet in terms of how all the spying and data or "meta data" is REALLY being used. it has nothing to do with terrorism, unless of course, you actually include what the government is now doing with this as terrorism, and in which case you hit the jackpot, and can declare "bingo" as you've just answered for yourself, the $64000 question. If you suddenly find yourself without a job, and somewhat shocked about it, then you'll know how the data is being used. If you then find yourself dealing with bank and mortgage issues despite a demonstrable amount of savings, then you'll really know first hand how all this data is being used. I would therefore suggest it might behoove you to pay off everything, including your mortage, use cash as much as possible, and not credit cards, be prepared for a long haul of about 5 years of utter financial chaos. Eventually that dust will settle. Because the refinancing gig is now over, you can be rest assured the stock market is officially and inexorably peaked for this cycle, and probably for at least a generation or two to come.