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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.

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[–] 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