06-15-2018, 10:47 PM
(06-15-2018, 09:22 PM)bfine32 Wrote: Personally I think you're fishing for something that's really not there. But let's pretend I am low/middle income and have to buy a car. Let's further pretend I'm going to be reasonable and buy a nice used/ bargain basement new for around $18,000 dollars. I can get it for about $282 a month on a 6 year note at 4%, Let's say the interest rate jumps 2% (big jump) I am now paying about $15 more dollars a month.
Higher interest rate is a sign of a strong economy; it just stops folks from spending outside of their means.
I dont think im fishing.
http://www.cnbc.com/2018/01/18/few-americans-have-enough-savings-to-cover-a-1000-emergency.html
These people say about 1/3 of American households dont have enough to cover a 1000$ emergency. And what household doesnt have emergencies?
So the broke people have to borrow in these situations and we say the economy is good because they are borrowing at a higher rate yet they are digging themselves into a deeper hole.