Posted on 10/20/2023 5:44:33 AM PDT by Red Badger
Rates are just now getting back to the long term averages.
Too many got too used to the cheap money of the last 15 years.
Real interest rates determined by the market are typically 2% above inflation. With the Federal Reserve “buying” treasuries via “quantitative easing” Treasury rates are too far below what they should be earning.
“Quantative easing” is a euphemism for “just printing money”.
Not only the millennials ... we are retired and the first mate has been hinting that she may need a newer ride. I told her that ship has sailed - she should have asked 18 months ago when one could get a new car loan for 2.75% or so. Between interest rates doubling and car prices going nutz, it will be a while before anything new graces our driveway - and it won’t be an EV.
Anything that helps stop people from buying cars using big loans is good, since most people don’t understand what a bad idea that is.
My personal Bond Fund of 3 and 6 month T-Bills has done great for over a year and is still going strong. Plus, no state taxes to pay.
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