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To: Ditto

Years ago, when my uncle told me that he bought his house at 4% interest, I thought that we would never return to those interest rates! Was shocked when those low rates returned. Never know when we will cycle back.

Didn't people in the 1920's borrow money to invest in the stock market? Hoover tried to warn them not to do it but was told to butt out. Then the crash. Seems that in some ways we are back there -- borrowing mortgages while investing in the stock market. Just wondering.


9 posted on 02/09/2005 11:27:14 AM PST by Kay
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To: Kay
Never know when we will cycle back.

The late 70s were not part of any cycle that I'm aware of. The economy was falling --- a real recession as opposed to the mild slump we had in 01. Unemployment was soaring, 12% or more, yet inflation was also soaring instead of falling as you would expect as demand fell. They called it "stagflation" at the time and it was counterintuitive to anything you learned in econ-101.

10 posted on 02/09/2005 11:46:42 AM PST by Ditto ( No trees were killed in sending this message, but billions of electrons were inconvenienced.)
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