SI
SI
discoversearch

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.
Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?


To: Bonnie Bear who wrote (13941)2/9/1998 10:58:00 PM
From: IceShark  Read Replies (1) | Respond to of 18056
 
Bonnie, You may not be aware that very long term historical "real, risk free" interest rates (so called risk free, but you sort of scratch your noggin when you look into the debtors) have been about 1/4 percent. Look at Ibbotson's collection going back several hundred years (and there are recorded figures, in a somewhat detailed manor, going back many, many hundred years in other sources).

How, something may certainly have changed since the 70's, but is it for all time? I doubt it. The inflation scare premium is being veeeery sloooowly bled out of rates; loan/money demand is also less than robust, despite all the doom and gloom predictions about Asean demand. The mythical old mortgage rates of 4% are easy in a few years.

Chew on that.

Regards, DWW