Originally Posted by
GGT
I was remembering the 70's and 80's. Yes we had high inflation during that time, and a home mortgage could have an interest rate as high as 18%, depending on the location and RE market. But the credit market was totally different then: *before debt was securitized and monetized with "newly created financial tools": college students weren't going broke paying their student loans, and sick people weren't filing medical bankruptcy claims *and home foreclosures weren't routinely destroying entire communities*. Savers could still stash cash in the bank and not feel like they were "losing" money.
Also, new monetary policy (going off the gold standard) and Volcker as fed chair, raising interest rates to curb inflation. Granted, I didn't follow it then like I do now, because I was still in HS and college. But it's still true that SAVERS are the biggest losers in the new economy. Whether it's from monetary or fiscal policy, or both. :bored: