2.2% 25-yr loan

[pms]

Since it's a yen loan, that rate sounds about right. Actually, it's a bit
higher than a car loan I saw at Fukui Bank. And any appreciation of the yen
will make it harder to pay.

Charles Jannuzi


Thanks Charles.  I realize that the rate's alright for Japan but since I
don't have a firm grasp on currency effects  I was just wondering why
everyone wouldn't want to borrow at these rates and what effect would that
have on the banking systems of various players.  I know if I was financing
something the 7-yr grace period on paying principal would sound a consumer
alarm.  I also remember that I've heard folks on the list mention that
inflation is good for the debtor because they pay back in cheaper money.  I
guess deflation and yen appreciation are related?

ps.  Moody's just upgraded S Korea's debt rating.