Quote:
Originally Posted by blankall
Pretty much. But that's the same people who also seem to benefit from high prices. Basically, anyone with capital is going to benefit if interest rates are low or high. Canada is doing nothing to alleviate the housing crisis.
|
The lost value in hard assets like real estate would be magnitudes larger than the increased benefit of higher interest rates for savers. It is no doubt a net negative, as we saw the last time we had really high interest rates.
Also, high interest savings sounds good in theory, but if people stop spending, and hoard their savings, it is a net negative for the economy.
Finding a goldilocks level of interest rates (4-6% range?) is extremely difficult. Extremely low interest rates were never going to be sustainable. But very high interest rates are much worse.