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Originally Posted by Danger I would say to an extent. Inflation is considered healthy if its at an annual 3-4%.
I'm confused about inflation making it easier to pay off debts. Maybe to the average person trying to pay off their mortgage, as you said. But, doesn't that just hurt banks in the long run? |
Yes, that is pretty much true. It is really just a balance between inflation and unemployment, and the government kind of sucks like that.
Yes, basically inflation takes money away from the rest of us. It is bad for people who are trying to save money, but good for people who like to spend it.
The purpose of the adjustable-rate mortgage was so that inflation wouldn't hurt banks. How ironic that now we have to increase it in order to solve the problems that banks created. It doesn't really matter though, because the banks deserve to lose the money, quite frankly.