Greenspan Predicts Double Digit Inflation

[jeffrey]

Former Federal Reserve Chairman Alan Greenspan said in an interview published on Monday the Fed would have to raise interest rates to double-digit levels in coming years to thwart inflation.

Greenspan sees double-digit rates: report | Reuters

[rob62521]

That is interesting, especially since the feds cut interest rates yesterday.

I remember when interest rates were in the double digits and we were getting a home loan...it was not fun. As soon as they dropped, we refinanced. Fortunately the home is paid off, but would like to see double interest rates on our savings and cd's now, though!

[Aleta]

I can remember when my sister bought her home and her interest rate was over 10%. It was difficult on them. At the same time, my step-father was earning over 14% on his CD's. I'm sure that is how he saved so much money in those years. Even in 1990, he was getting over 7% on his CD's.

[DebbieL]

Homes will be more affordable when interest rates go up - prices will go down (they'll have to). I'd rather pay $100K for a home at 10% interest than $200K at 5% interest.

[Fred333]

True because at the lower price you could pay it off faster. You could also get more hose for your dollar which is always nice.