[–] 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?
[–] ForTheUltimate ago (edited ago)
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.
[–] CanIHazPhD ago
Inflation is quite low right now (less than 2%) and the ecnonomy is healthy, why would they want to raise the interest rates to more than double the current level?
https://tradingeconomics.com/united-states/inflation-cpi