Quote:
Originally Posted by Red
Interest rates will be much higher in 3-5 years. You can bank on it. The economy won't be in the toilet forever.
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Define "much higher". Bumping the prime lending rate to 1.25% vs. 1% is a 25% increase. Anything above that I just don't see.
Just ask Japan.
Part of historically low interest rates means we've also never seen them raise after being this low. The government has hand cuffed themselves with an economy based on cheap money. Never again will we see the high interest rates of yesteryear. It's not just home prices that are effected by low interest rates. Consumer goods to multi-billion dollar industrial investments all rely on cheap money. The economy and as a result governments are addicted to cheap money and I don't see this changing any time soon.
But thats just like my opinion, man.
All I know is buying a house when chemgear was still crying wolf a few years ago worked out really well for me...
Sorry chemgear, not trying to pick on you.
