When money is free, you squander it

I ran my own business for 35 years as a Chartered Accountant (US equivalent CPA). Anyone of my clients under about 40 years old had never seen double digit interest rates. I used to warn such people about borrowing too much but I don’t think one of them took any notice of me. I saw one of my old clients a few weeks ago. He had built up a property portfolio with interest only loans from The Bank of Ireland at a rate of 1.99%. From what he said I think that he wished that he had listened to me.

A sensible summary of the financial system.


I agree. I would not borrow during this period and the last 10 years prior.

I also would not touch bonds during this period. Principle over the longer run will disapate to discounting. But I am a younger 60 year old. The older folks who want yield are doing their thing.

When we came to the US in

Oops, I pressed the wrong button before I’d had a proper think. I’ve started so I’ll wade on from memory.

When we did our sabbatical year in the US (surviving ok on a Berson Fellowship of $10k and savings) in 1980, I’m pretty sure our mortgage interest rate was up to 16% (that’s what I was going to double check with dh…and, indeed, not False Memory Syndrome) Of course, in those days, savvy home purchasers would plonk down a sizable deposit but still.