“Our approach is to reject the old vicious circle of the '80s-rising debt, higher long-term interest rates, higher debt repayment costs, lower growth, higher unemployment, then enforced cuts in public spending. That was the old boom and bust.” LongGrowthTermInterestCuttingHigherCostApproachRateDebtSpendingCirclesLong TermRisingRejectsUnemployment80sViciousInterest RateVicious CirclesRepayment Author:Gordon Brown
“Imagine you have six loans, small to huge. People want to close loans and because of that, they try to pay off the small loans, but that's not the right strategy. The right strategy, of course, is to pay the loan with the highest interest rate. People make this mistake and it costs them lots and lots of money, it's a very expensive mistake because interest rates accumulate and become very, very expensive very quickly.” PeopleWantTryingCoursesInterestPayMistakeImagineHugeCostSixHighestStrategyRateExpensiveLots Of MoneyLoanInterest Rate Author:Dan Ariely
“We're guessing at our future opportunity cost. Warrenis guessing that he'll have the opportunity to put capital out at high rates of return, so he's not willing to put it out at less than 10% now. But if we knew interest rates would stay at 1%, we'd change. Our hurdles reflect our estimate of future opportunity costs.” IfsOpportunityInterestWillingReturnCostRateOur FutureGuessingInterest RateHurdleOpportunity Cost Author:Charlie Munger
“The Fed has a lot of power in the economy because it has a big impact on the supply and cost of credit, that is, interest rates. It also plays a key role in supervising banks and historically has seemed to take it easy on the banks when it shouldn't have, such as in the lead up to the financial crisis.” PlayBigsEasyInterestRolesEconomyKeysCostCrisisImpactRateFinancialCreditFedsInterest RateFinancial CrisisTake It EasyBig Impact Author:Gerald Epstein
“There are times when a market such as housing, transportation or the stock or mortgage market keep rising and people with capital want to join in this growth. Soon the markets become overheated, partly because of the abundance of investment money and speculation. This is when the government should raise interest rates and increase the cost of borrowed money. Governments are shy about doing this because it could cause the very recession. Yet this is the best time to do this so that the inevitable recession never reaches the magnitude of the recent Great Recession.” PeopleWantShouldGovernmentCausesGrowthInterestCostIncreaseRaisesInvestmentRateInevitableRisingAbundanceShySpeculationHousingMortgageTransportationBorrowedMagnitudeRecessionsBest TimesInterest RateBorrowed MoneyGreat Recession Author:Philip Kotler
“I mean, Dodd-Frank is strangling small community banks. It doesn't make any difference what the interest rate is. They're not - they're not going to loan the money because they can't make any money for one thing plus the cost of compliance.” MeanInterestCommunityDifferencesOne ThingCostRatePlusFrankLoanInterest RateComplianceStranglingSmall CommunitiesDodd Frank Author:Rick Perry