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SE IL | I think its more the money printing and deficit spending that has caused the problem. Interest rates being high or low are a relative thing to where they have been. If rates had been 12% for a long time cutting them to 6 would make 6 seem very cheap and create a flurry of buying. On the flip side going from 3 to 6 makes 6 look expensive, however we weren’t at 3 for long enough to get it fully priced in. Also with so many fixed longer term rates now it took/is taking much longer for the higher rates to slow things down. In the 1970s/80s most loans got rolled over much more often. | |
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Interest rates and Powell
