When the cost of a home was roughly somebody’s average yearly salary, high interest rates were palatable
When the cost of a home is more like 5+ times the average yearly salary, high interest rates are suffocating
Can anyone explain to me if this is good or bad?
If you’re looking for a house, I think this is bad because the rate is crazy high and your monthly payment is gonna be nuts until rates drop and you can refinance.
For everyone else, it means The Federal Reserve has raised interested rates enough to at least stave off some of the consumption in the economy.
Should the Fed lower rates to start promoting growth again?
Government austerity is never a good thing. There are lots of ways of fixing inflation and governments everywhere chose to fuck over their own populations. The IMF is a disease.
