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 : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: bart13 who wrote (78462)	2/4/2007 6:09:33 PM
From: Dan3	Read Replies (3) \| Respond to of 110194

Re: Just for what its worth, rates didn't seriously start heading up in Argentina until 2001 (60 day CDs moved from 7% early in the year to 32% in December right before the devaluation), and also only started moving up in 1922 in Germany (5% in Jan 1922, 19% in Jan 1923). We're probably looking at something more like what happened from 1977 to 1981 when the 10 year note (best proxy for mortgage rates) went from 7.5 to 14%. An interesting exercise is to put your income into a mortgage caculator and see how much house you can afford at 15.5% (typical premium over the 10 year bond). 1977, 7.42 1978, 8.41 1979, 9.43 1980, 11.43 1981, 13.92 federalreserve.gov