Reply #7: Extemely low rates may hurt the poor [View All]

[Lady President]

I'm torn about how much low interest rates help the middle class. Actually, I think I'm more concerned with how much "creative mortgages" are hurting the middle class at least in my area. In the last couple of years there have been hundreds of middle class people in my area who have abandoned suburban homes because they were lured into mortgages with seemingly low interest rates that ballooned later. (But that's probably an entirely different issue.)

I can see that in general low interest rates help the middle class, but it is harming the lower class. I most recently worked for a low income housing syndicator and low interest rates translates into lower tax credit amounts for corporations. Usually, I don't care much about tax credits for companies, but in this case if the interest rates stay extremely low, then companies stop investing in low income housing. These apartment complexes are nothing like the old "projects", but instead are attractive, safe, and have many social services for the people. Of course, reinstating Clinton's dividend taxes would solve most of this dilemma.

The rates under Clinton were great because they occurred because of a solid economy, rather than an attempt to jumpstart a lagging economy. It is staggering the damage Bush* has done in a few years. Thank you for trying to put this in context for me. I appreciate it. :)