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"If they are high, lots." And what do the aggregate numbers say, rather than the anecdotes from rich people? If you can't afford the heating then you don't pa
by neilwilson 4y ago
"If they are high, lots."
And what do the aggregate numbers say, rather than the anecdotes from rich people?
If you can't afford the heating then you don't pay down loans. You take out new ones.
- mitthrowaway2 4y ago> And what do the aggregate numbers say, rather than the anecdotes from rich people? You don't need me to do your research for you, but the data agrees with the theory. Canadians are paying down their at a record pace. Household debt payments rose to $57.4 billion in Q3, its highest ever. https://www.theglobeandmail.com/business/economy/article-canadian-household-debt-q3-statcan/ https://www.theglobeandmail.com/business/economy/article-can... On the flipside, household debt exploded after rates dropped to zero. I think that's very uncontroversial. So either you believe the conventional wisdom that low rates increase indebtedness and high rates decrease it, or... or you'd have to take one of these positions: - every interest rate somehow stimulates borrowing or - there's one or more "goldilocks" interest rate that causes people to pay down debts but every other rate causes people to borrow.