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User Info Fekete - Inflation and deflation all at the same time?; entered at 2007-12-01 10:37:14
Krzelune
Posts: 3591
Registered: 2007-10-08
Question. I understand that corporate borrowing/lending has stopped, or at least slowed to a trickle like a river in Georgia due to lack of trust, but consumer barrowing is still taking place at near to normal rates. What will happen to consumer interest rates if the fed drops to near %0? I do understand it will not matter in the long run, but in the short term will consumer loan rates go down a lot? Would it be prudent to get a very low interest Home Equity Loan while rates are low but before the brown stuff hits the air moving device and just hang on to the cash since it will be worth more in a deflationary environment? Then hide the cash while they take your house. Credit hit will happen, but it doesn't seem to me it will matter after the fan event. I also realize this is not ethical, but ethics were thrown under the bus in the USA a while ago.

It's just a question. I personally wouldn't do this, but that is because I believe what belongs to Ceasar belongs to Ceasar and my wealth is accumulating elsewhere.
2007-12-01 10:37:14