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You might be right but I'm gonna hold judgment until the interest rates are back down to something more normal for a while. Recession or not, the situation does

You might be right but I'm gonna hold judgment until the interest rates are back down to something more normal for a while. Recession or not, the situation doesn't feel normal, and the current situation doesn't feel sustainable. Edit: In reply to those who feel "normal" isn't a thing: replace it with "sustainable".

seansmccullough 3y ago
By historical standards, we just got back to normal interest rates, the last 15 years was not normal - https://fred.stlouisfed.org/series/fedfunds https://fred.stlouisfed.org/series/fedfunds
- nsxwolf 3y ago
  I'm thinking this might be healthier. When I was a kid it seemed normal that money in the bank would accrue real interest. Now that mine's doing that, something just feels right about it, like things are back in balance. Take my money, loan it out, pay me a little something back.
notyourwork 3y ago
What do you consider normal? Normal may be different depending on your age.
fullshark 3y ago
This is normal interest rates, at least historically. The zero interest - savers have no choice but to buy equities / invest in technology ventures - environment post 2010 was the anomaly. https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS
datavirtue 3y ago
What if the interest rates are normal now? How in the hell are 2.5% interest rates "normal." No one would ever relinquish their capital for that return. They were artificial...that is why we ran into problems.
- notyourwork 3y ago
  Although I agree, fuck was not required to get your point across.
WrongAssumption 3y ago
Interest rates are at their historical average. We are coming off 15 years of absurdly low rates, which is why it doesn’t feel normal to you. 2008 wasn’t normal, and the economic affects that followed are the outliers.
303uru 3y ago
I love the idea that my 1.875 mortgage is normal. Historically it's as low as they got in 100+ years. Normal by historical standards is 7-15%.
- datavirtue 3y ago
  I would rather that the calculation method was different so that people could afford "8%" interest.
  - thfuran 3y ago
    What do you mean?
thfuran 3y ago
There's no such thing as normal. The 70s weren't normal what with the oil embargos and stagflation and the end of the Vietnam war. The 80s had banking crises and the beginning of Reaganomics. In the 90s, computers were really beginning to eat the world and geopolitics were realigning with the end of the USSR. The 2000s surely weren't normal—the dotcom bubble burst, 9/11 kicked off wars, the housing market imploded, etc. 2010s had really bizarrely low sustained interest rates. 2020s kicked off with some unusually stringent travel restrictions worldwide and a massive uptick in remote work.
jacobr1 3y ago
I agree with the feeling everything still seeming to be unsettled, but the interest rate environment is actually closer to "normal" today than the recent past. The extreme low-rate environment was the outlier, not today. The change itself though is certainly a cause of market shock.

seansmccullough 3y ago

By historical standards, we just got back to normal interest rates, the last 15 years was not normal - https://fred.stlouisfed.org/series/fedfunds https://fred.stlouisfed.org/series/fedfunds

nsxwolf 3y ago
I'm thinking this might be healthier. When I was a kid it seemed normal that money in the bank would accrue real interest. Now that mine's doing that, something just feels right about it, like things are back in balance. Take my money, loan it out, pay me a little something back.

notyourwork 3y ago

What do you consider normal? Normal may be different depending on your age.

fullshark 3y ago

This is normal interest rates, at least historically. The zero interest - savers have no choice but to buy equities / invest in technology ventures - environment post 2010 was the anomaly. https://fred.stlouisfed.org/series/FEDFUNDS https://fred.stlouisfed.org/series/FEDFUNDS

datavirtue 3y ago

What if the interest rates are normal now? How in the hell are 2.5% interest rates "normal." No one would ever relinquish their capital for that return. They were artificial...that is why we ran into problems.

notyourwork 3y ago
Although I agree, fuck was not required to get your point across.

WrongAssumption 3y ago

Interest rates are at their historical average. We are coming off 15 years of absurdly low rates, which is why it doesn’t feel normal to you. 2008 wasn’t normal, and the economic affects that followed are the outliers.

303uru 3y ago

I love the idea that my 1.875 mortgage is normal. Historically it's as low as they got in 100+ years. Normal by historical standards is 7-15%.

datavirtue 3y ago
I would rather that the calculation method was different so that people could afford "8%" interest.
- thfuran 3y ago
  What do you mean?

thfuran 3y ago

There's no such thing as normal. The 70s weren't normal what with the oil embargos and stagflation and the end of the Vietnam war. The 80s had banking crises and the beginning of Reaganomics. In the 90s, computers were really beginning to eat the world and geopolitics were realigning with the end of the USSR. The 2000s surely weren't normal—the dotcom bubble burst, 9/11 kicked off wars, the housing market imploded, etc. 2010s had really bizarrely low sustained interest rates. 2020s kicked off with some unusually stringent travel restrictions worldwide and a massive uptick in remote work.

jacobr1 3y ago

I agree with the feeling everything still seeming to be unsettled, but the interest rate environment is actually closer to "normal" today than the recent past. The extreme low-rate environment was the outlier, not today. The change itself though is certainly a cause of market shock.