Your grasp of economics is a bit shaky.
Don’t you think that 20% interest rates had every frigging foreign bank and citizen with 5 cents to spare to invest in this country ? Additionally, European and Japanese interest rates were quite high as well, for the same reason as ours - in the early 1970s the central bankers turned on the money spigot and pumped out money like they were putting out a fire.
No, those 20% interest rates were to shake inflation and liquidity out of our market. It only took 2 years of Reagan’s first term to fix the problem.
Excuse me?
It took until 1993 before any of us-briefly- could grab a 7%
fixed rate mortgage. In July 1984 they were 15%....
http://mortgage-x.com/images/graph/r_30_prime.gif
