The banker called us to say that thanks to the Brexit, the interest rates have dropped and we can refinance again.
Didn’t I say from the start that the longer Europeans play their nationalist games with dismantling the EU / the UK / Spain, etc and then putting them back again, the easier it will be for us here in the US to leave them far behind?
The stock market is back up, too! 🙂 The big crash that everybody predicted after the Brexit turned out to be a very brief two-day fright.
As long as NATO holds together (and so far it’s taking the right steps in response to Putin’s bullying), the EU’s problems won’t affect America that much.
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Low interest rates are good for people holding stocks or mortgages (or seeking other loans), not so good if your most of your savings are in bank saving accounts or certificates of deposit.
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This sounds like banker scam talk. A random reference to something in the real world as a pitch to get you more on the hook with them.
I remember when bankers were supposed to be models of restraint and were interested in the fiscal health of their customers…. them days be gone.
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No scam, just reality in these real-word situations:
If you have a lot of money in the U.S. stock market, either as individual stocks or as mutual funds (as I do), the very low interest rates give your fund managers opportunities to invest in worthwhile projects at lower risk — and good managers do that, creating consistent profits for the investors.
If you have a mortgage (as Clarissa does) or other big loans that charge you interest, lower interest rates allow you to renegotiate downward the interest that you have to pay on your mortgage / loan.
On the other hand, if your money is invested in options that pay you based on how high interest rates are (bank savings accounts, bank or federal certificates of deposit, etc.) — as many low-level investors do — then at very low interest rates these accounts pay you almost nothing.
If you’re tempted to buy gold or silver, which are both currently are very low valve, you’re taking a big gamble that the stock market will crash, and that people will rush into precious metals, causing their value to skyrocket. Since the stock market has stabilized following its initial two-day panic after the Brexit, this appears to be a very bad bet.
DO NOT TAKE THIS AS INVESTMENT ADVICE — I’M A RETIRED PHYSICIAN, NOT A BROKER! — BUT THIS IS CURRENT MARKET SITUATION, THANKS TO LOW INTEREST RATES.
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😃😃😃
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A conservative literary critic and college professor
Clarissa's Blog 
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