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A comment on The Era of Very Low Inflation and Interest Rates May Be Near an End. Parent comment

Re:The Era of Very Low Inflation and Interest Rates May Be N... by baybal2 on Thursday April 26, 2018 @04:58PM (#16935688)
We live in weird time. If rates were to hit 80ies era level, 1 out of every 3 countries will default.

For this reason they wouldn't.

I thank myself for making a decision in my teenage years to keep half of my savings in metals. It was unbelievably wise for a 15 years old me.

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Re:The Era of Very Low Inflation and Interest Rates May Be N... by matwood on Thursday April 26, 2018 @05:03PM (#16935758)
> If rates were to hit 80ies era level, 1 out of every 3 country will default.

Huh? Are you saying 1/3 of mortgages are variable rate?

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Re:The Era of Very Low Inflation and Interest Rates May Be N... by baybal2 on Thursday April 26, 2018 @05:13PM (#16935847)
I'm talking about government debt, not private. Though, a chain reaction , if it is to happen, will reach pretty much all and everything including private mortgages.

If you have a fixed rate one, you may well read the fine script better. Quite a few banks put a no reservations callback clause in the loan agreement.

If an individual gets his mortgage called back, for an average Joe the only way to get through that would be to get another loan, and at a higher rate.

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