Tag Archives: borrowing

Low Interest

Considering the basic principle of supply and demand, lack of interest is indicative of low demand.  Not wanting to know or learn more about something or someone (i.e., paying attention or focus) leads to disinterest.

In financial terms interest is money paid regularly at a particular rate for the use of money lent.  Your indebtedness creates interest both that which you have pay (financial) and attention (focus).

That is to say the debt has your focus, it worries you and requires attention.   This leads to a focus or interest in the rate of interest. Low rates (and high rates) can grab your attention.

Financial Interest Rates

In an interesting twist of the word, for me anyway,  low interest rates in fact have a high demand, people are interested in them .  I would be far more interested in borrowing at a low rate than a high one.

Our current financial interest rate environment is historically low and has been for some time.  This situation has become more of a norm than anything else.

High Rates

In the 1980’s, when we bought our first home interest mortgage rates were around 20% compared with less than 3% today, in some cases .

We survived through high and low interest ups and downs but over the last 20 years low rates have been the norm and interest in having a loan has been high.

These has resulted in the current world wide economic dilemma.   Economies and employment rates are typical of those associated with high interest rates but Governments fear raising them will cause a debt implosion, which it well might.