Rahul wrote on Apr 01, 2015 11:20:
Interesting point of view. Wondering what you think of it's implication on soecity as a whole though? There are times when things like this begin to have global expansion and frustration. I'll check back to see what you have to say.
Why compare a 30-year mortgage to a 1-year T-Bill instead of a 30-year bond? Isn't that comparing apple and oranges? Sh#ludn&o39;t banks buy 30-year bonds and add a premium for credit risk, interest rate risk, inflation, and profit and then loan money out at that interest rate for 30 years? Only a fool would loan money at 5% long-term and pay 15%, and only a bigger fool would not take advantage of that investment opportunity.