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real property

09/16/14 9:48 PM

#69939 RE: bellator_exec #69938

Bellator and Expert, Rates are going nowhere. The good old USA can't afford it. Just look at what doubling or tripling the current interest rate will do to the cost of servicing the debt. Low rates are the new norm.

TheExpertHimself

09/16/14 9:49 PM

#69940 RE: bellator_exec #69938

well, it is part of the equation with the risk of non-payment. Weve seen what can go wrong with low interest rates in the past with Greece and the Latinos buying houses they could not afford in both US and Spain....
Still, lending standards have gotten way better nowadays....and banks have gotten better capitalized.

Emerging markets and some credit unions might be a little exposed...by not having assessed the risk good enough...or everybody else was just too conservative.

2% semi-subprime car loans offered by many credit unions seem a little peculiar...but on the other hand, with 1% 5 yr Cds theyll probably be fine.