The government beat this projection by nearly $ 1.6 billion — by taking $ 1 billion from
reserve,
keeping spending levels $ 600 million less than projected, and through $ 335 million of savings from
lower than anticipated
interest rates on government debt.
Moreover, by
keeping short - run
interest rates near zero for more than seven years, paying
interest on excess
reserves (IOER) above the effective fed funds
rate, and convincing markets that
rates would stay
low for a long time (forward guidance), the Fed has increased the reach for yield and appears more
interested in priming Wall Street than in letting markets set
interest rates and allocate credit.
WIth the large amount of equity you have in your home and the super
low interest rates this seems like a viable strategy for you as long as you don't overleverage,
keep a
reserve fund (it could be the home equity LOC) and find real deals.