Will Rates Stay Low?
As I have mentioned many times before with all of the money that is being printed we will have inflationary problems which in turn will drive interest rates higher.
“All the government borrowing programs aimed at increasing liquidity have some economists worried that there could be a steep price to pay down the road—especially for borrowers. The influx of cash that government borrowing will push into the economy is expected to cause inflation, which in turn will send up interest rates. As savings stagnate and unemployment rises, already-burdened consumers and businesses may not be able to afford to borrow at those rates. That interest rates will move higher as the economy grows, money circulates and government debt explodes is virtually axiomatic. As the government uses its programs to encourage investors to go into riskier products, it will have to raise the yields on its own debt to pay for its borrowing.”