SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Thomas M. who wrote (116178)8/9/2001 10:50:25 AM
From: Mark Adams  Read Replies (2) of 436258
 
I wasn't going to bother commenting, but I changed my mind. In the 80's, we had high inflation with no assurance it would retreat (real interest rates may not have been as extreme as nominal rates would leave you to believe).

The worry of the day was the exponential growth of the Federal debt would swallow up all of America's productive capacity within years, bankrupting both the buck and the government. Gold, Guns and Food in the bunker. I doubt many individuals saw a future with a federal budget surplus, short term interest rates below 5%, and unemployment below 5%, all supporting a great bull market.

You might have a valid point- that lower interest rates lower the debt service cost as a percentage of disposable income. This is countered by the fact that rates on revolving debt are little changed, and this type of debt makes up a larger portion of the non-mortgage debt today.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News