Quote:
Originally posted by cj@Apr 18 2004, 09:51 PM
So based on the theory of age affecting interest rates, why were they so high in the 80's when our population started aging? did it need a whole decade to balance out?
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elementary, Watson...
population started aging, meaning, baby boomers reached the capacity and earning power enough to increase demand for money drastically.
as I mentioned earlier,
there is a certain delay in age up-interest rates down,
due to the factor that 1 year old can't invest.
1 year old baby boomer needs to reach 30+/- to have enough capital and knowledge to start investing in stocks, own business, etc...
if you take this delay in concideration,
everything else comes into place