Originally Posted by
sailingfun
Can you explain that. Interest rates were really high in 1986. You also need to keep in mind that the current Captain can earn far more with the options for premium pay. We have lots of pilots exceeding 500 and even a few over 600K. I tried however to compare apples to apples.
$160K in a 14% bond rate market, vs $350K in a 3.5% bond market. Hindsight is 20/20, we know the performance of money from 1986 till today. It is fully possible we could repeat, but consider the DOW would have to go to ~500,000. In other words, the captain in 1986 was paying off his debts in much cheaper dollars, while earning unparalleled gains in the market.
When interest rates normalize at a historical 7%, today's captain is making more. You will find out what I mean over the next decade.