Quote:
Originally Posted by AltaGuy
We live in an era of cheap money. It trickles down into everybody's lives. Whoever pointed out their HELOC as the source of their money actually hit the nail on the head here.
Nearly every bit of debt in our economy eventually filters out into an amortized mortgage over as long a period of time as possible. Homeowners just roll their debts into their mortgage, and then fight to keep a minimum amount of equity in their property.
Interest rates are gonna eff us all one day is my prediction. With or without significant debt, one day we'll either need to go lower for economic stimulus or higher for inflation, and won't be able to. When that day happens, the world economy is going to have a time.
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This is the thing. Higher interest rates (which are going to happen sooner or later), are going to be a huge, huge problem.
The only hope is that they can rise at a slow enough rate as to not wreak havoc. But that doesn't happen...