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>In a healthy economic environment, loaning money doesn't make any sense. Given how healthy the economy is right now, and how low interest rates are right now,
by voldacar 7y ago
>In a healthy economic environment, loaning money doesn't make any sense.
Given how healthy the economy is right now, and how low interest rates are right now, the market clearly disagrees
- dd36 7y agoHow healthy is it? Not healthy enough for the Fed to increase rates.
- voldacar 7y agoOh I agree that current rates are totally artificial, but it's silly to say that in a healthy economy, people just won't want to loan money.
- jondubois 7y agoOnly about 10 years ago, the entire banking system was on the brink or collapse and had to be bailed out - This was followed by a decade of cutting interest rates and quantitative easing which served to pump free money into the economy; most of this money ended up directly in the hands of corporations and tech startups (and the Consumer Price Index was only kept artificially low due to increased centralization of wealth). The economy that we have today is the result of a decade of artificial manipulation by government entities - There is little real value behind the growth. All the numbers look bigger but they're more brittle than ever.