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To: Christian Engineer Mass
Considering that the lenders are obtaining money at zero percent or negative interest, 4% is kinda pricey.

For comparative purposes, consider that in the 1960s the discount rate was 4+% and the mortgage rate was 5.5-5.75%.

In terms of the big picture (what to do) - I have no idea, but I'm leaning to borrowing a lot and locking in a long rate of 4% being smart. This is a pro-inflation view (meaning, I think inflation is likely), that might be wrong, so YMMV. In a deflationary crisis, a big mortgage at 4% when incomes are falling consistently could be a terrible move - IF you think they really will make you pay.

17 posted on 09/29/2011 11:36:10 AM PDT by Jim Noble (To live peacefully with credit-based consumption and fiat money, men would have to be angels.)
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To: Jim Noble

inflation has generally trended with interest rates, but it doesn’t have to be so, especially if printing money is the cause of the inflation,

I think.


18 posted on 09/29/2011 12:07:06 PM PDT by Christian Engineer Mass (25ish Cambridge MA grad student. Many conservative Christians my age out there? __ Click my name)
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