Thursday, September 5, 2013

Net Interest as a Percent of Interest Paid

Graph #1: Net Interest as a Percent of Monetary Interest Paid

Interesting that the graph trends up until the mid 1970s (said to be the end of the Golden Age) and down after.

When times were good -- that is, in the golden age -- interest income grew faster than interest cost. Since then, however, in the hard times, interest cost has been growing faster than interest income.

Yeah, that makes sense. Times are good when income predominates. Times are hard when cost predominates.


Related post: Factors (2)

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