Do High Interest Rates Fix High Inflation?

Re:Do High Interest Rates Fix High Inflation? by frumper on Tuesday June 13, 2023 @05:30PM (#36317723)

High interest rates are meant to lower inflation. That wouldn't reduce prices, but it would reduce the rate at which prices increase. It seems to be doing that. Also, the article is talking about the FED, so looking at the mortgages from a US perspective, they don't come up for renewal. If you planned on permanently low rates, then that sounds like you have mismanaged your mortgage decisions. Rates have been at historic lows, there isn't much room to go but up.

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Re:Do High Interest Rates Fix High Inflation? by morkalork on Tuesday June 13, 2023 @05:39PM (#36317847)

I don't live in the US but the country I do live in is closely integrated with the US and follows a very similar trajectory in terms of policy decisions.

"If you planned on permanently low rates, then that sounds like you have mismanaged your mortgage decisions" this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it?

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Re:Do High Interest Rates Fix High Inflation? by tekla on Tuesday June 13, 2023 @05:53PM (#36318074)

> consumer blaming crap

Is this how people refer to making poor decisions now?

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Re:Do High Interest Rates Fix High Inflation? by sigstoat on Tuesday June 13, 2023 @06:08PM (#36318266)

seems to be popular to believe that offering consumers a choice that might not be great for them is immoral and should be banned.

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Re:Do High Interest Rates Fix High Inflation? by morkalork on Tuesday June 13, 2023 @06:56PM (#36318791)

Right, so, let's do things like abolish the FDA and bring back usury instead?

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Re:Do High Interest Rates Fix High Inflation? by FrustratedMonky on Tuesday June 13, 2023 @06:07PM (#36318248)

I think it is response to 2008 crash, where consumers were blamed for buying houses. "those stupid consumers, why did they buy houses with the home loans we gave them, it's their fault".

Since 2008, this has become a more common refrain from the right, that consumers are to blame.

https://www.youtube.com/watch?v=zp-Jw-5Kx8k https://www.cnbc.com/2014/02/24/5-years-later-rick-santelli-...

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Re:Do High Interest Rates Fix High Inflation? by bombcar on Tuesday June 13, 2023 @06:00PM (#36318171)

The USA is rare in that the 30 fixed mortgage is standard and anyone who gets an adjustable or balloon mortgage is suspected of being up to something.

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Re:Do High Interest Rates Fix High Inflation? by chollida1 on Tuesday June 13, 2023 @06:12PM (#36318321)

> this is the kind of tone deaf, consumer blaming crap that is going to get our current government booted out and replaced with a regressive, populist conservative government. Hooray. But I guess they deserve it?

But it’s also very true that they made the decisions that lead to this.

I’m Canadian so I’m in a similar boat to your country.

We’ve had a terrible government for thr past 10 years and they’ve made terrible spending decisions that have ruined Canada. I like your country, though, we’ll have to wait 3 more years to start to undo the damage the liberals have down to Canada so consider yourself lucky you aren’t from here:(

Rates were at historical lows while a normal Historical rate was around 5%.

If you planned your life around rates that were at levels never seen before then you did make a mistake and people should bear the brunt of that.

That was outright gambling I’d you managed your life around rates not returning to historical norms.

I feel that we should not treat people like helpless children and instead treat them like adults

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Re:Do High Interest Rates Fix High Inflation? by tick_tock_tick on Tuesday June 13, 2023 @08:37PM (#36319686)

USA does fixed rated mortgages to prevent issues like this. Variable rate mortgages are risky and the average customer isn't equipped to understand them.

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