Robert Shiller on Why Home Prices Could Fall for Several Decades

Conrad

PS - what's to say low interest rates are the new norm, long - term and in any event when they go up to say 5%, it is likely the economy is improving. Dont recall swathes of repos when rates were 5 or 7%, do you?

Darthvader

Conrad wrote: »

PS - what's to say low interest rates are the new norm, long - term and in any event when they go up to say 5%, it is likely the economy is improving. Dont recall swathes of repos when rates were 5 or 7%, do you?

people were not borrowing so much as now with inflated prices

Conrad

Darthvader wrote: »

people were not borrowing so much as now with inflated prices

Wrong again.

In 2006/7 when we had typical mortgage retail rates of about 7%, repos were low.

When rates rise we will be better off economically so this is a non - topic.