[llevrok]

as an economics major, I recall learning that the “natural” interest rate over time is something like 4 to 6pct.

as a 64 year old, I recall mortgage rates 16 percent plus in the early 80’s. We re-negotiated our home mortgage once or twice when the rates fell from 10 to 8 and so on.

People (generally) under 50 do not recall rates like that. Any change in rates will be a huge shock to most. Imagine some millennial applying for a car loan and being told that interest is not “free” but 6pct? Can you hear the sound of economic brakes screeching???

The long term, artificial suppressing of interest rates is, to me, the greatest threat to the economy out of many economic threats out there these days.

[Kaslin]

When we bought our house in 1967 the interest rate was 51/2% and our neighbors who bought their houses before we did had a lower interest rate

[grania]

The interest rates on our mortgages and cars were high, but that gave sensible people a reason to pay off their debts. That way, you could save money and get paid interest to do so. Now, nobody seems to be getting out of debt. There's little incentive to not have debt, as the interest rate being paid on it is so low, and savings would pay near-zero percent.

So yeah, our interest rates were higher, but we were better off for it in the long run. Now retirees who responsibly saved for the future are being slammed because all planning assumed a minimum 4% interest being paid on savings.