Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (6559)	8/3/2001 12:16:47 AM
From: Ilaine	Respond to of 74559

>>what are the points ?<< Good question. I never even heard of points myself until the 1970's interest rates were so high as to trigger United States laws against usury. Usery, charging interest on loaning money, is a sin, according to Christian church doctrine. Usery is not only a sin, it's also illegal. Weird anachronism, but that's the way it is. So rather than face legal penalties for charging excessive interest, lenders characterize each percent of interest payments as a "point" which is prepaid, or amortized, but everyone pretends that it's not interest. There are a lot of names that can be used to characterize interest-rates-which-shall-not-be-called-interest-rates, but "points" is the most common.