Current Events — HabitableZone

Current Events » in reply to LOL everyone is an "economist"

Not laughing
RobVG — (archived)

I didn’t say we need to jack interest rates now. What I meant was, there is a natural interest rate where retirement savings for the elderly can earn a decent return with less risk. A rate that will discourage barrowing by high risk individuals. A rate that will grow capital and yes, one that will keep inflation at bay.

"9% interest rate would stifle a robust economy"

During the Carter years, mortgage rates hit 18% and the economy didn't grind to a halt, which it would have if your statement held water.

I pulled 9% out of my ‘hat’ but look at where rates were during the Clinton years, which were pretty darn good.

http://mortgage-x.com/images/graph/historical_rates.gif


And Buck, with a (admittedly rusty) Bachelors degree in Economics from the University of Washington I believe I have a handle on the topic.

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