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SW “Ohia” |
I think the thread below about borrowing versus paying cash would have some very different answers if rates were in the double-digits. Being a younger farmer means I never experienced those.
Have we witnessed a paradigm shift in banking? I don’t see how the global economy could survive at rates much higher than today. Governments, big business, small business, homeowners, consumers, all have debt loads today that double-digit rates would drastically affect. Even if rates are fixed on existing debt, how can these groups suddenly pivot away from the easy/cheap debt for new needs.
Even if we don’t see negative or zero rates, will we be seeing mortgage rates well under 5% and various other debt under 8% for decades to come? What will happen if they rocket?
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Can interest rates do this forever?
