Quote:
Originally Posted by Khobin~
But at the same time it will mean that all those people that are close to defaulting to due higher refinance rates, on things like mortgages, might not. Also, with a flood of cheaper houses, because of that situation happening over the last year, and the lower rate, means it's more affordable for people to get started out.
Granted some people may take the opportunity to max themselves even more, but those people obviously haven't learned the lesson yet:wink:
And how you think that higher interest rates will help stimulate an economy out of a recession?...The higher rates go, the less people want to spend. The less people spend, the more it hurts the economy...The lower rates are, the more they spend, the more the economy gains...  |
You're forgetting that the banks are lending out money that won't be paid back. So the banks suffer and they go out of business and then everyone's screwed. And then that's when the government takes over then everything goes to $#!+. The real way to stimulate the economy is to lower taxes. And if the feds want to control this inflation that we have, they need to raise interest rates. Because of inflation you need more dollars to compensate. From what I can tell, you're all up for lower interest rates but that causes an even higher inflation. Is that going to help spending? I think not. Everything you buy is more expensive.