News for hackers. Stuff that matters.

A comment on Global real interest rates and the ‘suprasecular’ decline, 1311–2018 (2020). Parent comment

Re:Global real interest rates and the ‘suprasecular’ decline... by anewaccount2021 on Thursday January 28, 2021 @08:57PM (#25952631)
Rates can never rise. Americans and American corporations are too indebted with no room to finance increased debt servicing costs. The dilemma is the longer rates stay low, the more debt is piled on. Ultimately there must be a complete reset.
[ Parent | on HN ]
Re:Global real interest rates and the ‘suprasecular’ decline... by phkahler on Friday January 29, 2021 @06:20AM (#25956181)
Yes. The 2008 bubble popped when the fed made an abrupt upward change in rates. Because housing prices vary inversely with rates, that put people under water. Now imagine the same effect with corporate and government finances on a much larger scale.
[ Parent | on HN ]