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|Subject: Re: Global Interest Rates||Date: 5/27/2013 11:58 PM|
|Author: TMFHockeypop||Number: 34969 of 35510|
I'll have to find the article, but I'd argue that anything much under 4% should be labeled "government subsidized." How can Switzerland maintain .69% 10 year rates without some support? Looking at these traditional US rates, and even comparing with equities shows that we would be at 4% or higher now without intervention.
And looking at US historical rates, how risky were those higher rates pre-1990.
Also, since I just returned from Australia this weekend (which you Paul know), their CD rates in the 5-6% range look pretty good in this inflation environment, but they're also tempered by home mortgage rates in about the same range.
I think it will be MORE interesting to see how long or if US corporate 10 year rates will remain close to treasuries, and how this all unwinds.
RYR Home Fool
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