Loading ...Back in the 1970s, before massive imports, people could afford 18% on a $40,000 house. Also three year $3,000 for new car loans were affordable. Houses these days are $600,000, and cars are $50,000, explaining the 6 year 10% car loans common these days. The Fed would NEVER be able to raise rates to 20% with everything so much more, and general wages not keeping up with inflation.
1970-1974
- 1970: New, Dodge Demon, $2,652. Used, Camaro, $2,295.
- 1971: New, Ford Torino, $3,895. Used, Pontiac Firebird, $1,195.
- 1972: New, Ford Maverick, $2,140. Used, Chevrolet Malibu, $2,995.
- 1973: New, Mercury Montego, $4,281. Used, Toyota wagon, $4,595.
- 1974: New, AMC Gremlin, $2,408. Used, Dodge Dart, $1,195.
Houses in my area stayed flat from 1968 until 1982. The same with the Dow went nowhere flat 1968 to 1982. The Dines letter sent me a mailgram in June 1982 to buy the Dow at 796. From ’68 to ’82 every time it got above 1000, Dines called it “The Graveyard in the sky, above 100.