Whatís wrong with higher interest rates?

By Colette Lottinger

July 29, 2011 at 9:22 am  | Mobile Reader | Pring this storyPrint 

I remember that the interest rates on our first two houses were 5 1/4 percent and 6 percent. That was back in the 1960ís.

People were paying 18 percent during the 1980ís. It was really tough, but we lived through it.

Some people were able to build their savings that way because it was wise to put money in the banks which were paying higher interest on it. Now it is not. Money makes very little interest. You could almost just as well hide it under your mattress.

So the older population hasnít been able to make money on what they saved like my parents were able to do.

The very low interest rates allowed people to buy houses which they never could have afforded. But that got them involved in real estate crises which have brought about foreclosures that people are still suffering from.

Seems like the government should let it be.

We should make do and suffer through some things and let the market take care of itself.




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