Re:Savings and Loan Crisis 1980–1989
by theK on Monday May 01, 2023 @02:34PM
(#35777149)
Agreed. But I think there is one thing that is not being considered here, that is that the markets are priced to the previous era with almost 0% rates.
This means that you now have to pay for the thing that is priced to be sort of affordable to you with 0% interest but the interest you can get is more like 5%.
Best example of this is the current housing market (regardless whether building or buying). If your previous monthly to a mil was 3k$ now it is over 5k$. This immediately prices you out and will probably lead to a lot of stagnation in 20-30 months.
This means that you now have to pay for the thing that is priced to be sort of affordable to you with 0% interest but the interest you can get is more like 5%.
Best example of this is the current housing market (regardless whether building or buying). If your previous monthly to a mil was 3k$ now it is over 5k$. This immediately prices you out and will probably lead to a lot of stagnation in 20-30 months.
NFA.