Re:Mortgage Rates Jump Above 6%, Putting Pressure on Housing...
by prottog on Thursday September 15, 2022 @01:55PM
(#32855912)
> Interest rates have been declining for 400 years
This is surprisingly easy to explain: interest rates are a combination of the time factor of money (a dollar in hand is more useful than a dollar tomorrow) and the risk of default. Geopolitical stability and security has increased in the aggregate over the past few centuries, so it follows that interest rates have declined in aggregate.
Makes you wonder what the implications are, now that we've hit zero. ;-)
This is surprisingly easy to explain: interest rates are a combination of the time factor of money (a dollar in hand is more useful than a dollar tomorrow) and the risk of default. Geopolitical stability and security has increased in the aggregate over the past few centuries, so it follows that interest rates have declined in aggregate.
Makes you wonder what the implications are, now that we've hit zero. ;-)