Quote:
Originally Posted by jimjamuser
A 3% mortgage could be "normal" when the inflation rate is ZERO percent.
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Even during the Depression, when the money was DEFLATING, mortgage interest rates never hit 3%.
Nobody in their right mind -- and certainly not a bank -- would voluntarily create a business around a 3% profit that requires a 20 year risk. You need government dumbassitude to create that level of lunacy.
What's really asinine is that right now, for the first time in human history, it is actually possible to create 0% inflation and a stable economy. All it would take would be to take the creation of money out of human hands and write a computer program that in real time matches the money supply to the growth of the GDP. We will never in our grandchildren's lifetimes see such sane management of the economy.
As long as a politician has something to gain from it, there will always be a knob on the Magic Money Machine that can be turned up to "11", just in time for the next election..