Rate accompli: Are rising interest rates bad for all assets?
Many Happy Returns
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Is There Moral Hazard in Refinancing Mortgages?
Roman: There is a huge moral hazard problem. I mean one thing they could do is introduce the system in the US where you've got 30 year mortgages. But of course when are you going to fix a 30 year rate is it when rates are at 6% or 7%? Yeah and if you look at refires in the US no one is refinancing their mortgages right now. That's bad for the economy right? And also just on a macro picture is presumably bad for economic mobility that people can't as easily move around to get new jobs because they're locked into one house in one location for 30 years potentially.
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