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[–] ForTheUltimate ago 

So still, malinvestments when it fits, no malinvestments when it doesn't.

you know it goes both ways. no malinvestments when it fits, which is all the time since you can always find another explanation.

long before 2008 came along

Which supports the theory that the 1% interest rates created new malinvestments.

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[–] CanIHazPhD ago 

Which supports the theory that the 1% interest rates created new malinvestments.

So, just to be clear, the 1% interest rate from around 2002 to 2004 is enough to create your magical malinvestments, but the ~0.5% from ~2009 to 2016 is not?

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[–] ForTheUltimate ago  (edited ago)

So, just to be clear, the 1% interest rate from around 2002 to 2004 is enough to create your magical malinvestments, but the ~0.5% from ~2009 to 2016 is not?

No, they both are enough. I predict the FED will be unable to raise interest rates to 5.25% within 30 years and hold them at that level or higher for 1 year without a recession. Atleast according to the theory.