To spur inflation — to raise prices above today's
Negative Equity levels — the Fed wants banks to lend out more credit.
Not exact matches
«While rising long - term rates will ultimately become a
negative for profits and multiples, we do not see current
levels as a reason to de-risk and sell
equities,» J. P. Morgan's Dubravko Lakos - Bujas says.
«While rising long - term rates will ultimately become a
negative for profits and multiples, we do not see current
levels as a reason to de-risk and sell
equities,» Dubravko Lakos - Bujas, head of U.S.
equity strategy at J.P. Morgan, said in a note Wednesday.
We suspect that much of the projected growth benefit from corporate tax reform comes from enacting expensing of equipment, which reduces the entity -
level effective tax rate to zero on
equity - financed investment and makes it
negative if financed in part with debt.
The Feds thought what we need to do is re-inflate prices back to bubble
levels, so as to keep the debts on the books and save the Banks from having
negative equity.
Both valuations and consumer sentiment may be at high
levels, but with stable real yields, rising productivity and «normalised» valuations, the
equity outlook is not necessarily
negative — as long as economic growth continues.
High
levels of
negative equity kept one out of five homeowners frozen in place and unable to sell, driving down inventories, especially among lower priced homes.
Any initiatives focussed purely on first time buyers, without a sufficient increase in house building, could push prices up for entry
level properties; particularly if second time movers have low or
negative equity.
For these
levels of risk, it's best to take on perfectly diversified corporate
equity; however, the periodic
negative beta is useful.
At this
level of home appreciation, many households will climb out of a
negative equity position very soon, and be able to take advantage of an FHA refinance.
Even in the presence of falling home prices, the accumulation of
negative real estate
equity and high
levels of unemployment, consumers still have been placing a premium on paying off their credit card obligations and maintaining the health of their card relationships.»
The majority of global
equity markets have posted
negative returns, bond yields are near record lows, the loonie has fallen to
levels not seen in over 11 years, and, to top it all off, there are some steep tax hikes on the immediate horizon.
That
level of
negative equity won't disappear anytime soon.
«The U.S. housing market has shown strong signs of life in recent months, but many local markets continue to struggle with high
levels of
negative equity as the result of home prices that are well off their peaks.
Some states, including the so - called» sand states» (Arizona, Florida, Nevada and California), are still well above the national
level, at an average 28 percent, but they, too, have seen improvement over the last year, with
negative equity dropping over 40 percent across those four states since January 2012, says LPS Applied Analytics Senior Vice President Herb Blecher.
«There has always been a clear correlation between higher
levels of
negative equity and new problem loan rates,» Blecher says.
«Surging home prices this spring and summer, lower
levels of inventory, and declining REO sale shares are all contributing to the nascent housing recovery and declining
negative equity.»