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IANAE but this doesn't track, the amount of money people are willing to borrow at a high interest rate is less than what they are willing to borrow at a low int
by dasil003 5y ago
IANAE but this doesn't track, the amount of money people are willing to borrow at a high interest rate is less than what they are willing to borrow at a low interest rate.
- pydry 5y agoYeah, absolutely true. A high interest rate with high wealth inequality just means that the wealthy suck wealth from the middle classes by lending out money instead of renting out property. Either way you're still getting screwed it's just the delivery method that changes.
- dasil003 5y agoHow are you quantifying this? I've spent most of my life very middle class and I always had to pay rent, but I only rarely had to borrow money.
- djbusby 5y agoRent is a payment to borrow property. Property = Capital.
- pydry 5y agoMy parents were similarly middle class. They bought an enormous asset on credit and spent ~4x its purchase value on interest payments. This was pretty normal back when interest rates were high.
- nemothekid 5y agoBuying a house is usually done with a mortgage which is also borrowing money