Which Interest Rate Will Win - 3525 Words

Thanh Vu Professor Paul Ady English 130 12/14/2014 6.8% bloodhound vs. 3.86% chihuahua: Which interest rate will win? My dad used to say, Son, the best treasure you can get is your education, because you can never lose what was planted in your head. Surely, education is the best investment a man can have. Education brings freedom, and while money doesn t buy happiness, freedom does. We all have dreams, we all know what we want to do, and education is the best way to help a man realizing his dream and bringing him freedom. As president Lyndon B. Johnson has once said, Poverty shouldn t be a bar to education, and education must create an escape out of poverty (The Great Society Speech). You can t be free with debts, and no debts should make education strips the financial freedom of a person and lead him INTO poverty. Sadly, such is the reality that we, as students, are facing right now, with total college loan debts smashing over the twelve-digits tier and knockout the total credit card debt (Erin Dillion 1), currently gains the title of the second worst debt only after home mortgage (Baum). Outstanding household debt, from 2003 to 2013, Student loans has run up to $0.994 trillion dollars, making it the second from home mortgage, risen from 3% to 9%. To be precise, from 2003 to 2008, the student debts has gone up 141%, then from 2008 to 2013, although ALL other outstanding debts (home mortgage, home equity revolving, auto loan, credit card, and others debt) hasShow MoreRelatedRegulating Interest Rates as a Solution to the Recession Essay998 Words   |  4 Pagesmarket, which allow for overhaul and maintain a prosperous future. Regulating bank interest rates and federal interest rates will reduce, if not eliminate the housing market crisis. Most importantly, it will set a new precedence for the housing industry to follow. First, the banking industry must regulate their interest rates on existing customers. Mortgage brokers offered less than worthy credit home buyers subprime and adjustable rate mortgages (FactCheck.org, 2008). Adjustable rate mortgagesRead MoreThe United States Housing Market1087 Words   |  5 Pageshousing prices continued to increase, lenders found themselves in a win-win situation. If homeowners paid their mortgages, the lenders made money. If homeowners could not pay their mortgages, they would be forced to foreclose their homes, and the lenders could sell the home for a profit, as long as housing prices continued to rise. This win-win situation became a very desirable situation for outside investors. At the time, interest rates on mortgages provided higher returns on investments than any otherRead MoreWhat Is The Business Cycle? 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The bottom line of any negotiation process is to achieve the win-win situation for both the parties (Spangler, 2012). The negotiation procedure is based on a procedure of data trade or information sharing. If mediators are looking