Not only did the gov (BUSH!)start the idiotic Iraq disaster but the Fed artifically lowered rates way too low. The ridiculous low rates spurred a temp economic boom in housing, etc but now risks a major recession (THEY CREATED A BUBBLE ECONOMY).
The fed does not set interest rates, the fed dickers with interest rates. The fed dickers with rates to help bankers, ceos, and republican presidents. Bush set higher rates with his deficet. The fed only could dicker so long before the depositors complained. The banks got a nice spread, ceos got nice gdp growth or in other words inflation induced revenue growth to fund stock increases and stock options. The president got an economy based on debtors buying houses and cars on the depositors dime.
Who in the end gets hurt the savers and the workers.
Some good posts, indeed.... Without stock buybacks...leaves a big potential issue for shareholders...... As you know 85% of NVR stock is controlled by Institutions, and then can make you rich, or then can annihilate your portfolio..... Until I see another announced buyback, would tend to caution anyone, NVR should be looked at from a trading perspective......
ALA Barnanke halts rate increases, get in and or buy more.......and trade....
If rates continue the upward trend in fighting off inflation...and mortgage rates creep up to 7%, 7.5%, 8%, NVR will be like the rest of the builders selling for a PE of 5,6,7, etc.
Hey, us savers have been annihilated with 2% and 3% money for the last 5 years... Must be Agnostic...... regards