Quote:
Originally Posted by Michael G.
I remember in the 80's when interest rates were high.
I also remember leaving work one day when interest was 19%
Went to the bank and borrowed $5,000 at 12% and invested it at 19%.
Ay.... to be young again.
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Borrow at 1% and invest at 2,3,4%. This is the main reason why we are in an inflation crisis. The fed kept rates too low for WAY too long. Do you remember when rates were actually negative in certain countries? Why wouldn't you borrow free money? We are the land of consumerism. Of course we are going to borrow and spend. Household debt just reached a record 16 TRILLION.
Household debt surpasses $16.5T in Q3 amid inflation, rising demand: NY Fed report | Fox Business. Of course companies are going to borrow to grow their business. Heck, even Apple is borrowing money with a staggering 51 BILLION dollars in cash. Something is rotten in the state of Denmark and it's not my $1 eggs.