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Posted: August 21, 2015 Filed under: Writings by one ambidextrous... 4 Commentsfrom a sociological perspective, it could be argued that the reason why interest rates are still at lows is because of the vast importance individuals currently attach to the future
© Heath Muchena, 2015
On The Heath 
Hmmm… econoically speaking, wouldn’t supply and demand suggest interest rates should then be high?
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Hmmm… I don’t think if you were looking out for your ‘future’ you’d be interested in high-interest rate debt, would you?
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You are right that I would prefer a lower interest rate. However, the market is driven by how much I would be willing to spend. So, if I really want that car *now* or that house *now* in order to secure my future, then demand is high and interest rates rise. Interest rates fall when the economy needs a boost. That is, when people are inclined to secure their future by not spending money. Especially money they don’t have.
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you said it 🙂
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