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If you were older, you would still consider current rates low and recent past an obscurity that couldn't last long. I can say that definitely about Europe, ie h
by jajko 2y ago
If you were older, you would still consider current rates low and recent past an obscurity that couldn't last long. I can say that definitely about Europe, ie here in Switzerland interest rates used to be around 7% for quite some time and economy was doing fine, then it dropped to negative and afterwards people complained when they rose to 1-2%. 0.4% now, not complaining.
- deleted 2y ago[deleted]
- arccy 2y agoIf you're that old, you probably already have a house when it was much cheaper relative to income levels. Now, a tiny shift in interests rates affects not only the general economy, but people paying back mortgages which can take a significant chunk out of your income.
- adamc 2y agoYeah. I lost my house in a divorce, and it was quite a shock when I looked at the "new" pricing. Not sure that can last.
- ghastmaster 2y agoWhen prices rise through inflation, without equal income rises, low interest rate takes on a new meaning. If it takes more hours of labor to purchase the same thing, it requires lower interest rates to borrow.
- adamc 2y agoYep. When we bought our first house (mid-1990s), interest rates were over 7%. The future is hard to know, but demographic changes are going to move a lot of money out of the stock market (because retiring boomers and soon gen-xers will want safer investments). At the same time, labor will itself become more valuable, because the same forces are going to tighten the labor market. To me that is suggestive of an environment where the rewards of startups vs. engineering jobs are weaker.