Frankly it was ridiculous how low our interest rates were for how long, a correction was absolutely needed. What's insane is that the current rates haven't had near the impact the fed probably expected or hoped for. Which is crazy because everyone I know is feeling the effects.
But this is also literally the first time in my life that I've seen an interest rate above 1% on my bank savings, so that's kinda neat.
Ya, the whole article read as: Investors are addicted to cheap money.
Of course banks and investors want lower interest rates, that's how they make money. When rates are higher, fewer people take on debt, which means less money for the banks. And investors have higher borrowing costs, so they make less money. Sadly, this also sucks for the average person, as our credit is also more expensive. However, we can take a look over at Turkiye for the counter-factual plan. Erdogan was nice enough to run an economic experiment for the world on what happens when you cut interests rates during inflation. The result of that experiment has been rather insane inflation.. But hey, it got him re-elected. So, that was nice (for him).
Ultimately, higher interest rates are kinda needed and probably here for a while.
Brazilian here, you guys doing 7% interest? (Meme reference may apply).
Well if that crook is against it, I'm for it.
He's a crook for sure but high interest rates really hurt the working class. Their mortgage payments go up etc...
Low interest rates also hurt the working class. It's a contributing factor to the massive increase in housing prices. No matter how things go, the rich will always win out at the expense of everyone else.
I don't understand this logic.. low interest rates means it's easier to borrow, which most poor people have to do to get anything. I think most cars have monthly payments right? Rate goes up- payment goes up. Richard Wolff talks about this alot on the socialist program. But you're right in saying the rich are not impacted. Because they generally have savings and benefit from high interest rates.
It's easier to borrow for rich people too, and they have a lot more money to borrow with, so they can pull out cheap loans and buy everything up. If rates are higher then the poor can't afford current prices, but current prices were driven up by low interest rates. The rich and the poor borrow for different reasons. The poor borrow because otherwise they can't afford the things, the rich borrow because it seems like a good investment. That's how you get things like housing as an investment instead of as shelter.
Biggest piece of shit in the world. Fucking hate that man.
Meanwhile in Argentina with 110% yearly inflation:
"Try me bro!"
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