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Politics : The Obama - Clinton Disaster -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (32751)	7/2/2010 7:20:58 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 103300

Re: "You could have below zero rates, but it would be like a Govt subsidy where you get a tax break for borrowing money." Yes, I suppose you could PAY people to take out loans... but that is really not very realistic (and certainly not likely!). If inflation were higher (I'm going by the 6 month 'trimmed mean PCE' inflation reading from the Fed that shows inflation at 0.6% and trending lower still) then in REAL TERMS (after inflation) you could argue that "real rates" were sub zero. But with inflation vanishing then even today's record low rates are not producing a situation where people are getting 'paid to borrow'.