thorburn "It seems interest rates are a barometer for financial stability." Spot on. Most people need to change their under pants when they hear inflation and interest rates are on the move. It's a blessing in disguise, it means the economy is on the move up, employment is down and spending is up. Low interest rates were fantastic! I have a job, I earn heaps, I can pay off my massive spending in full each month, I have no mortgage so if I wanted to borrow to take over someone's fore closure it would cost me close to zip. Money in my account was earning an excellent return, far more than what it deserved. Not a bad trade off for low interest rates, NOT. It meant the economy was screwed! Put it this way, who is going to lend you $500k at 8%? Certainly not the local Mafia. Even 10% is a bargain. Some of you should look up the late 80's interest rates to realise how good you got it. And if you're willing to book up a plasma tv and similar on a credit card don't baulk at home interest rates, at least a home has a means to the end.
