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Politics : Foreign Affairs Discussion Group

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To: TimF who wrote (262786)	4/28/2008 12:00:36 PM
From: c.hinton	Read Replies (1) of 281500

Tim people determine how much they can afford in monthly payments and ajust the amount to meet that ability those payments remain the same for the term of the loan... Over that time people enter their high earning years.... People are give inflation ajusted wage hikes... Their monthly payments remain the same. Relatively speaking they earn more while the loan repayments stay fixed. re. interest rates...of corse low inflation expectations lead to low rates....and the effect is direct. ps i will gradually post the various points that may be infered from the two papers..... the first and most obvious is to ask is why did the fed write the papers.

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