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I don't follow that economics. How does interest rates being high make bonds easier to pay? And how to I get some of that action, that sounds pretty magic to
by ajross 1y ago
I don't follow that economics. How does interest rates being high make bonds easier to pay? And how to I get some of that action, that sounds pretty magic to me. :)
(No, that's not correct. Borrowing in the 80's was more expensive. Period.)
- scoofy 1y agoYou’re mistaking rate vs outstanding debt. If I have a $1M mortgage at 6%, and a $1000 credit card debt at 25%, which is harder for me to pay off, assuming I make $100K per year?
- ajross 1y agoClick on the link. I assure you I am not.
- scoofy 1y agoI see your point. I suppose my only response is that a significant amount of our debt is being rolled over annually. It’s currently being rolled over from extremely low interest rates to non-trivially high interest rates. We should expect the spike on the left side of the graph to keep increasing unless rates decline significantly, soon.