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Are low interest rates good for the working man? Think about it and post. Who do they really benefit?
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I guess initially yes, but over the long haul not really because its not good for the country which is where the workin man has to make his buck. My house rate is 6.75, I could lower it, but why? I have about 4 years left on the pay off of the house so its not worth it to me. But to a younger guy trying to by a house, every percentage point (at least out here) is about a hundred bucks a month. On a car, the 0% stuff is a joke, cause you have to overpay for the vehicle so that negates any savings there. Problem with low interest is the money isn't making any money, and I think thats where you start printing more and worsening the problem. Thats the way I see it, I could be all wet... -
Are artificially low interest rates good? They might be if more than 5 to 10% of the people trying to buy a house could get a loan.
They are great for hedge funds to borrow money to play the market. You do know that borrowed money profit is taxed ar 15%, as compared to other profit in the 30s%.
They are terrible for anyone retired or close to retiring or anyone that will retire some day. I guess that includes everyone. When interest rates fall below inflation rates, it robs people of their money.Comment
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Low rates are great for borrowers, not so much for savers. What is also not so great is the reason for the low rates. The .fed pumping out dollars. Big Ben Bernanke flooding the world with the U.S. bucks makes stuff more expensive and keeps rates artificially low. So you're more likely to be a borrower because after filling your gas tank and your fridge with inflated oil and food prices you won't have much left to save."The trouble with quotes on the Internet is that you can never know if they are genuine." ~ Abraham LincolnComment
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With our national debt approaching $17 trillion I would have to say low interest rates are in everyone's interest. If the Prime Rate was to return to the the long term average of 3-4% then the interest we would be paying on future debt would more than double.Comment
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I have to agree with mud on this one. one thing is for sure the rich in this country are taking full advantage of the low rate and are buying up as much as possible thats one reason the number of billoinairs has grown to such a high number in the past few years while the rest of us are sliping into debt or just cutting back to keep our heads above water. trump said it in 08 this is the time to buy if you can another words take advantage.Comment
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The World's Billionaires
Edited by Luisa Kroll, Matthew Miller and Tatiana Serafin, 03.11.09, 06:00 PM EDT
The richest people in the world have gotten poorer, just like the rest of us. This year the world's billionaires have an average net worth of $3 billion, down 23% in 12 months. The world now has 793 billionaires, down from 1,125 a year ago.Comment
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