Generation Lost (Gray Wolf Security #17)

CHAPTER EIGHTEEN

“My sons are missing,” she said, slamming her fist against the table. The men in the room all stared at her, tired of her temper tantrums and ego.

“Your sons are grown men who can take care of themselves. Perhaps if you weren’t so insistent on vengeance for an old woman who beat you at your own game, you might find your sons. You have plenty of cash available. Buy another home. Build another home. You don’t need that one.”

“Don’t speak of my sons, and that was my home,” she said, glaring at DiBenedetto. He laughed at the woman, shaking his head.

“You either want to speak of them, or you don’t. We can’t do both. They are grown men. They will return or not. We have all suffered losses. Yes, it was your home. Just like those homes belonged to those elderly people. You weren’t concerned for them or where they would live, and they have no money. You should have stuck to the plan, but you did not. Let’s move on to other business.”

“No! I say when we move on,” she said, slamming that hand against the table again.

“You’re going to break your hand,” said Xi. “If the table doesn’t break it, I will. You do not say when we move on. You are not in charge of this organization. In fact, you have no say whatsoever in what we do any longer. We will use your resources, and that is it. You no longer control the mortgage company, which we needed.”

“I will buy more,” she said urgently.

“You will buy nothing. You were reckless with your cash assets, allowing your sons to play with their food.”

“Please, just help me to find that old woman! I just know that she’s behind all of these issues in some way.”

“One old woman responsible for all of this? I doubt that was the case. What was this woman’s name?” asked St. Pierre.

“Robicheaux. Irene Robicheaux.” The men all looked at her, then at one another. St. Pierre stood to address her in a superior position.

“You will not find her. You will not find them, your sons. You should be lucky you are not dead. We will not help you, nor shall we go after her. Neither will you.”

“Wh-what?” Marie was shocked. Normally, if she were assertive enough, she would always get her way.

“Leave it alone,” said Varovski.

“No. No, if it were your sons, you wouldn’t leave it alone. Absolutely not! I don’t need you. I don’t need any of you.” She started toward the door, but the two men blocking it refused to move. “Get out of my way!”

When they were utterly immovable, she turned to see Xi with his pistol pointed at her.

“You cowards,” she scowled. “You don’t have the balls to do what I do.” The silencer kept the noise to a dull, muffled roar. He looked at the two men and nodded.

“Dispose of her and strip her home of anything that might lead back to us,” said Xi. They nodded, tossing her body over their shoulders as if she were a sack of potatoes.

“Now, where were we?” asked DiBenedetto.

“We might be onto something,” said Jean, staring at the others.

“What are you onto, Mr. Jean?” asked Victoria. He smiled at the beautiful young woman who was all grown up and contributing in ways none of them could have imagined.

“This mystery with the mortgages and everything else. We think they might be connected,” he said.

“Oh. Yeah. They definitely are,” she nodded, turning to walk away.

“Whoa, whoa, whoa,” he said, grabbing her arm. “What do you mean they definitely are?”

“Isn’t it obvious?”

They all stared at her with raised brows, and she nodded, realizing it was a common mistake she made, assuming others thought in the same way she did.

“Sorry. Okay, listen, several factors can influence the interest rates offered to mortgage borrowers. We already know that. Things like inflation, economic stability, and the bond market just to name a few.

“When inflation is high, the purchasing power of the dollar decreases. Lenders have to compensate for this by increasing interest rates so they can maintain their returns. Of course, if inflation is low, mortgage rates will tend to be better as the lender because you don’t need to adjust rates as much to protect against inflation.”

“I actually think I’m following this,” frowned Jean.

“The state of our economy plays a crucial role in mortgage rates. When the economy is unstable, like if we have a recession or financial crisis of some sort, lenders see lending money as riskier, and the rates increase. Seems obvious, right?”

They all nodded, just staring at her, waiting for her to finish.

“If there is a growth period for the economy, rates might be low enough to encourage borrowing, and that stimulates our economy. Bond markets are weird. I think so, anyway. Mortgage rates are tied to the yields on long-term bonds, say, like a ten-year treasury bond.

“When bond yields rise, mortgage rates tend to follow suit. Higher bond yields attract investors, leading to increased borrowing costs for lenders, which are then passed on to borrowers. Make sense so far?”

“I think so,” nodded Jean and the others. “Keep going.”

“Okay,” she smiled, sitting cross-legged with a big smile. “The Federal Reserve influences mortgage rates. The bank uses various tools to manage the money supply and control interest rates.

“When the Federal Reserve wants to stimulate economic growth, it may implement a particular policy that involves lowering interest rates. They do this so it can lead to lower mortgage rates, making it more affordable for individuals to purchase or refinance homes. Common sense.

“But when the Federal Reserve wants to curb inflation or slow down economic growth, it may pursue a different kind of policy by raising interest rates. This increase in interest rates can result in higher mortgage rates, making borrowing more expensive and potentially impacting housing affordability. It drives the prices of houses up, the demand down, and they get all the money from this.”

“The government wins,” whispered Miriam.

“Oh yeah,” laughed Victoria. “They win big time! Everyone thinks that inflation isn’t something the government wants, but it actually helps them to balance things sometimes. It’s all pretty stupid. I have a better plan.”

“Victoria, I know you do, honey. But what else?” asked Jean.

“Well, the Federal Reserve's decisions on interest rates don't directly determine mortgage rates. But, their actions influence the overall interest rate environment, which in turn affects mortgage rates offered by lenders.

“If the Federal Reserve manages economic trends and monetary policy, it can help to maintain stability and balance in the mortgage market. Ideally, it supports growth and manages inflation, which would…”

“…ensure that credit is available,” said Jean.

“Yeah, exactly!” smiled Victoria. “But it gets better. See economic trends and the housing market is super important for someone deciding on a mortgage. If the economy is strong and we have low unemployment, the consumer spends more, and home prices rise. If we have higher unemployment and decreased spending, the housing prices fall. It’s that simple. Low interest rates make houses more affordable. High interest rates make them less affordable.”

“But no matter what, the government wins,” said Tinley. Victoria nodded, smiling at the room of her favorite people.

“Yep. The government always wins.”