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> It’s a sign that something is seriously wrong in the world economy. Too much money chasing too few ideas. I have a heterodox view – many economists think that

> It’s a sign that something is seriously wrong in the world economy. Too much money chasing too few ideas. I have a heterodox view – many economists think that interest rates are too low, but I think they’re too high. The market is trying to burn off excess value that’s not being used well and world governments are trying to insolate rich people from those effects. Could this be related to past 30 years of consolidations in the banking industry? Smaller/specialized institutions invest differently than large ones. Anecdotally, they can be more willing to take on small high-risk investments in local businesses (R&D, small-scale disruption) or cyclical low-risk low-yield investments (small farms)...

zbobet2012 9y ago
I would bet so. Just as eco systems with ow biodiversity are prone to rapid instability](http://onlinelibrary.wiley.com/doi/10.1111/ele.12073/full http://onlinelibrary.wiley.com/doi/10.1111/ele.12073/full). Taleb makes a similar argument in Antifragile. I think his arguments lack in formality, but [England's Work](http://www.englandlab.com/uploads/7/8/0/3/7803054/2013jcpsrep.pdf http://www.englandlab.com/uploads/7/8/0/3/7803054/2013jcpsre...) on the matter certainly support him.
raiflip 9y ago
Problem is interest rates are still very close to the 0 bounds. Even a few years ago interest rates could simply not go any/much lower. Since we had the same problem when interest rates could not go any lower, I don't think its interest rates themselves thats the problem. Instead the problem is a global excess of savings vs. demand resulting in a situation where interest rates decrease and there's more money then there are things to invest in.