Low interest rates here to stay, page-9

  1. 53,872 Posts.
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    'Am I right in thinking that a Greece default would lead to higher rates because of risk?'

    yes.

    however, events such as greek defaults may eventually lead to another gfc that will significantly reduce interbank loans! as around 90% of mortgages by value do not come from the bank customers depositing money, the issue is not only about interest rates, but banks may have to significantly reduce the value of mortgages they are able to provide!
    Last edited by aimone: 02/07/15
 
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