Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 10 minutes ago, CautiousLurker said: I mean, people are about to start paying more in interest, and the rich keep getting richer - the truth is not very ambiguous here Yeah... But low interest rates made the rich richer by inflating asset prices like real estate and stocks and more money spent on stock buy backs So ppl criticized low interest rates for benefiting the rich and now they criticize rising rates for benefiting the rich. Which one is it? Anyway. In reality rising rates don't really increase revenue of the rich much at all. Rates passed on to consumers rise because the rates banks and other institutions borrow on to lend in the first place also rises. When rates were at 0% from the Fed mortgages were like 3%. Now that it's 3% mortgages are like 6% to 7% so the spread ain't that hugely different Also this does benefit pension funds and savers who wanna save on GICs and long term it also helps bring down house prices so down payments can make a bigger difference and it discourages investors from being as active in scooping up real estate So I'd argue it's low rates that are worse for middle class and better for rich. Cuz they can manipulate it better for themselves I also wanna point out interest rates have steadily dropped from 1980s all the way to 2021 (with short term fluctuations) and although there's other factors, it's interesting how as rates started dropping inequality increased Link to post Share on other sites More sharing options...
Ronk 14,930 Posted October 23, 2022 Share Posted October 23, 2022 1 hour ago, The Fame said: At this point I'm about to just go live in the woods in a cave and eat berries and leaves So we've come to this. It turns out the cave dwellers in the stone age had it right all along. Invite us all into your cave and we can party hearty. I'll bring the chips. I live outside the space time continuum. Link to post Share on other sites More sharing options...
PartySick 172,496 Posted October 23, 2022 Share Posted October 23, 2022 35 minutes ago, CautiousLurker said: I mean, people are about to start paying more in interest, and the rich keep getting richer - the truth is not very ambiguous here Well, I mean, interest on what exactly I have no debt, no loans to pay back, all I pay are monthly bills, insurance, and taxes Explain it to me like I'm stupid So...pretend you're talking to @PartySick Whimsical bitch Link to post Share on other sites More sharing options...
PartySick 172,496 Posted October 23, 2022 Share Posted October 23, 2022 55 minutes ago, Economy said: No reason I know u just blame everything on Florida so I decided to tag u and also blame it on Florida. U can figure out how Florida is to blame for this tho If u can't find a way to blame Florida you can always: I'm down #SinkFloridaAlready Whimsical bitch Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 18 minutes ago, Ronk said: So we've come to this. It turns out the cave dwellers in the stone age had it right all along. Invite us all into your cave and we can party hearty. I'll bring the chips. I mean ur old enough that u should remember when at one point a mortgage was like 15% to 18% lol U literally lived thru it Link to post Share on other sites More sharing options...
Ronk 14,930 Posted October 23, 2022 Share Posted October 23, 2022 29 minutes ago, Economy said: I mean ur old enough that u should remember when at one point a mortgage was like 15% to 18% lol U literally lived thru it I remember that time, but I was lucky and got my mortgage when rates were at 6%. I live outside the space time continuum. Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 17 minutes ago, Ronk said: I remember that time, but I was lucky and got my mortgage when rates were at 6%. That's more or less also the rate my parents got their first mortgage in 2005 It's also the rate mortgages are about to hit now in Canada again for first time since 2008 lol Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 1 hour ago, PartySick said: Well, I mean, interest on what exactly I have no debt, no loans to pay back, all I pay are monthly bills, insurance, and taxes Explain it to me like I'm stupid So...pretend you're talking to @PartySick HB savings? If u have savings, higher interest rates can benefit that Link to post Share on other sites More sharing options...
CautiousLurker 19,709 Posted October 23, 2022 Share Posted October 23, 2022 1 hour ago, PartySick said: Well, I mean, interest on what exactly I have no debt, no loans to pay back, all I pay are monthly bills, insurance, and taxes Explain it to me like I'm stupid So...pretend you're talking to @PartySick You spend more money and have less money, Jeff Bezos has more money - there, that should answer all your questions and concerns Btw, I have no idea what I'm talking about, like this: 2 hours ago, Economy said: Yeah... But low interest rates made the rich richer by inflating asset prices like real estate and stocks and more money spent on stock buy backs So ppl criticized low interest rates for benefiting the rich and now they criticize rising rates for benefiting the rich. Which one is it? Anyway. In reality rising rates don't really increase revenue of the rich much at all. Rates passed on to consumers rise because the rates banks and other institutions borrow on to lend in the first place also rises. When rates were at 0% from the Fed mortgages were like 3%. Now that it's 3% mortgages are like 6% to 7% so the spread ain't that hugely different Also this does benefit pension funds and savers who wanna save on GICs and long term it also helps bring down house prices so down payments can make a bigger difference and it discourages investors from being as active in scooping up real estate So I'd argue it's low rates that are worse for middle class and better for rich. Cuz they can manipulate it better for themselves I also wanna point out interest rates have steadily dropped from 1980s all the way to 2021 (with short term fluctuations) and although there's other factors, it's interesting how as rates started dropping inequality increased this is all gibberish to me Also kinda sounds like propaganda, cuz the rich keep getting richer regardless and the poor keep getting poorer, I'm not saying that rising rates contribute to that, but that situation keeps happening regardless, so... might as well blame the rates as well ALL of it is designed to take your moneys away It's a joke! When you give me that look, it's a joke! Link to post Share on other sites More sharing options...
PartySick 172,496 Posted October 23, 2022 Share Posted October 23, 2022 50 minutes ago, Economy said: HB savings? If u have savings, higher interest rates can benefit that HB is housing benefits right? Like, stuff that helps with rent? We own the home I live in Whimsical bitch Link to post Share on other sites More sharing options...
PartySick 172,496 Posted October 23, 2022 Share Posted October 23, 2022 9 minutes ago, CautiousLurker said: Btw, I have no idea what I'm talking about, Whimsical bitch Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 8 hours ago, PartySick said: HB is housing benefits right? Like, stuff that helps with rent? We own the home I live in How about* Link to post Share on other sites More sharing options...
pachinko 10,753 Posted October 23, 2022 Share Posted October 23, 2022 Will this cause house prices to decrease? Link to post Share on other sites More sharing options...
Economy 52,844 Posted October 23, 2022 Author Share Posted October 23, 2022 8 minutes ago, pachinko said: Will this cause house prices to decrease? It should. Here in Canada (we have Simmilar rates to the US but even higher) home prices are falling at the fastest monthly pace (over last 5 straight months) since they began tracking monthly data for monthly house prices 40 years ago or so Link to post Share on other sites More sharing options...
PartySick 172,496 Posted October 23, 2022 Share Posted October 23, 2022 5 hours ago, Economy said: How about* "How about"? But yeah, I have savings Whimsical bitch Link to post Share on other sites More sharing options...
.thumb.jpg.99c40bc2a10ded8236a48b4fe15c6be8.jpg)
Featured Posts
Archived
This topic is now archived and is closed to further replies.