3 ms·

If it's an economy-wide crash, the opposite is more likely: a reduction in interest rates.

• murph-almighty 7y ago
  Fed rates can't really get much lower, so I'm not sure how that'd work out...
  • Robotbeat 7y ago
    They can. They're at 1.55% right now (they were at 2% not long ago, I guess they're trying to stave off a dip in demand). During the depths of the recession, they were basically 0% (i.e. 0.07%, etc). Below inflation.
• YourMatt 7y ago
  Can they really go much lower? Interest rates won't ever dip below inflation will they? If they do, wouldn't this be detrimental to the future of our economy? My guess is that after the election's over, interest rates will start creeping up and eventually cause an overall reduction in housing values as it becomes harder for middle class incomes to afford homes at the current values. I don't think a crash like 2008 is coming. I just think a relatively minor adjustment is right around the corner.
  • Robotbeat 7y ago
    They can and were below inflation during the recession. At 1.55% now, were at 2% a couple years ago, but just ~0.07% (not a typo) during the depths of the recession. Below inflation.
    • CalRobert 7y ago
      For that matter, some places have mortgages below 0%. Denmark, for instance.