Steve.....Thanks for the reminder...!...smile.. I remember those days well. It wasn't just the high interest rates (some boat loans were 16%..) But another problem was the Fuel Crisis. In a declining market caused by high interest rates and a Recession, we also had to contend with resin/fiberglass shortages along with price hikes for all Petro products. I used to drain fuel from my C-401B into my car so I could get to work. (no lines at the airport) We had an endless stream of laid-off boat craftsman applying for jobs. I remember having lunch with (the late) Buster Hammond who ran Islander Yachts. He said things were so tough they were decking Islander 36s before installing the engines because they didn't have the money (credit line) to buy the engines. All his dealers were going broke as well. Islander later went Bankrupt...(early to mid 80s I think)...along with several other boat builders. Not a good time to tool and market a new model. And you're correct; people always buy smaller boats. A new Montgomery is still half the cost of a new car. (and more fun) Fair winds Bob -----Original Message-----

From: "Steve R." <stever707@mail.saabnet.com> Sent: Sep 23, 2007 5:05 PM To: For and about Montgomery Sailboats <montgomery_boats@mailman.xmission.com> Subject: M_Boats: RE: M23 Still For Sale in AZ for $5800 or offer

Few people, Jerry included, were able to sell boats when interest rates soared as high as they did in the early 1980s. Numerous firms went belly up. Jerry survived by focusing on smaller boats.

Here is a chart from the Fed:

Home Mortgage Rates (%):

1977, 6.83 1978, 9.06 1979, 12.67 1980, 15.26 1981, 18.87 1982, 14.85 1983, 10.79 1984, 12.04 1985, 9.93 1986, 8.33 1987, 8.21

http://www.federalreserve.gov/releases/h15/data/Annual/H15_MORTG_NA.txt

steve

Steve R. M-15 #119 Lexington, KY

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