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That's putting a lot of faith in central banks. The current heads of those banks, at least in the US and EU, have telegraphed pretty clearly that they are willi
by magila 5y ago
That's putting a lot of faith in central banks. The current heads of those banks, at least in the US and EU, have telegraphed pretty clearly that they are willing to let inflation run hot for better or worse.
- kevin_thibedeau 5y agoThe wealthy deserve their low interest loans. Then the manna they generate will trickle down... Somehow.
- kortilla 5y agoLoans are for people without money. High interest is good for people with money who loan it out. The wealthy only use the loans when it makes more sense to keep money earning returns somewhere else.
- HWR_14 5y agoThe wealthy are using loans backed by stocks to avoid capital gains taxes.
- throw_m239339 5y ago> Loans are for people without money This is false. Filthy rich people are taking billions in loans right now because there is a chance the dollar crashes and they might have to repay their loans for way less than they have taken them.
- kortilla 5y agoRead the rest of my post before replying.
- throw_m239339 5y ago> Read the rest of my post before replying. Pretty sure you modified your message after I replied to you at first place. This isn't very honest.
- bob33212 5y agoUntil something terrible happens they will keep rates low. The only people who care about high inflation are people who have salary jobs with low raise potential and people on fixed incomes like annuities. Those people have far less political influence than the rich. Obviously, there may be second order effects that cause another reason to raise rates, but that is TBD