2 ms·
In theory lenders are supposed to set their rates to get the desired real return. If inflation is 10% they'll add 10% to their rates to make sure they stay ahe
by nostrademons 5y ago
In theory lenders are supposed to set their rates to get the desired real return. If inflation is 10% they'll add 10% to their rates to make sure they stay ahead of it. (This actually happened in the 1970s, and is a major reason why rates were so high.)
- Aperocky 5y agoTheory is great but my radio station is filled with ads about loan rates that starts with 2.
- nostrademons 5y agoYes, and this is a great opportunity for profiting at a lender's expense.
- uoaei 5y agoMoney is a lot freer than it was.