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And also in a way the opposite. If there was a scale of value in terms of being between the borrower (people in debt) and people lending (people with cash). It
by neximo64 5y ago
And also in a way the opposite.
If there was a scale of value in terms of being between the borrower (people in debt) and people lending (people with cash). It swings heavily in favour of people in debt.
- metafunctor 5y agoAre you assuming interest rates and inflation are somehow uncoupled?
- jtsiskin 5y agoThey’re referring to people with existing, fixed interest rate debt. My student loans for example are 5%
- metafunctor 5y agoStill not uncoupled, but rather an estimate of future reference interest rates (which is strongly coupled to inflation).
- blatchcorn 5y agoI see your point in theory but in practice: - poor people have less money to repay interest on the debt after buying necessities at an inflated price - interest rates rise following inflation which will increase debt repayment costs and likely offset any benefits gained from debt being inflated away - it is very rare for 'people' to actually issue loans, I imagine 99.99% of loans are issued by banks
- noduerme 5y agoNonetheless, it's a great time to take on debt. (if you can get a fixed rate)
- noduerme 5y agoThis. Let's not discount the fact that this is why I've been loading up on everything I always wanted to buy on 2-3% APR for the past year. I'm a person who never had any debt or credit for the last 25 years. But now's the time. Me and everyone else in America. That's the demand spike. Everyone wants to lock in the rate before the party stops.