lets say that hypothetically inflation picks back up again over the next couple of years, and the fed needs to raise rates to 15% or higher to beat it, like what happened in the 80s. what happens to the broader economy under this scenario?
i was just running some numbers on my mortgage, at 6.25% on a 600k loan i'm currently paying 4k/month including interest and principal. at 15% i'm paying 7.5k/month. i've got about 250k in cash and equities saved up and i net around 4.5k/month from my job, so i could survive about 7 years of 15% interest rates before all my savings are used up (assuming i keep my job and nothing else changes). however, i'm assuming most people don't have 250k in savings.
would the economy collapse? or would it just result in a lot of good deals for people with cash on the sidelines and very little debt?
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