5 Bridge

I am still getting emails from people (not from this site.. but from our work one.. which is finance related..) every day panicking about their home loan and their fixed rate mortgages. Yes. Fixed rate.

Now, is the time fixers should be celebrating. Because, although there is nothing fundamentally wrong with the mortgage market, there is a lot of negative sentiment. And low consumer confidence is what drives up inflation. Because it drives up saving. And drives down spending. Basically, when things are going well, it is easier to control inflation. And by going well, you are talking about global confidence. Consumer spending. Those factors. Both of which are tanking in the states at the moment.

Nothing wrong fundamentally with the mortgage market. Am I kidding.

No. Well, not really. People can afford their debt. They just cannot afford their debt on their house, plus their debt on their credit card, plus their debt on their personal loan, plus their college tuition.. etc etc.

The mortgage market is taking the blame for a lot of other debt issues. And as always it comes back to education. If every American even just read finance blogs regularly, let alone actually attended financial coaching classes, things would improve.

Ignorance, ultimately is to blame for the instability/volatility we are feeling right now.

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