[lb1lf]

> That $40k home isn’t so cheap when you make $13k and interest rates were 11-15%

-However, if interest is at 11-15%, chances are inflation was in the high single digits - so as long as wages stayed reasonably level (in real terms), you weren't too bad off.

(In 80s Norway, my parents paid nigh on 20% interest on their home loan - but inflation hovered around the 10-12% mark and you got a 100% tax deduction for interest payments, making debt a good deal for a lot of people. Hence, people borrowed more money than ever before as credit was effectively free. Stop me if you've heard this one before.)

What could possibly go wrong? Sigh.