What they are learning is debt no longer pays.
The pendulum does indeed swing if you live long enough. Excellent points, Bob!
Hopefully, our legislators will learn the same thing before it’s too late (if it still isn’t)
Running up infinite debt, adding up to multiple trillions a year - was a monstrous idea. Pure thievery. Very corrupting.
My first mortgage was in ‘79, at 11.5. Then came a few at 12.5, which was scary. I had to really work with the numbers to estimate our ability to withstand any possible volatility in prices and income. I also switched to adjustable rate loans, which was a good idea - it acted, kind of, like an investment in bonds, with payments coming down year after year.
One thing that not very many people realized was that adjustable rates, back in those days, were pretty fixed - there were all kinds of limits on how often they could raise rates, and by how much.
Higher rates make you think. Artificially low rates, supported by limitless borrowing, make people stupid and reckless. |
