4 ms·
> That's very unicausal explanation that puts all blame for Fed. That's a fair point and that wasn't my intention, but you can only fit so much context into a
by gridlockd 7y ago
> That's very unicausal explanation that puts all blame for Fed.
That's a fair point and that wasn't my intention, but you can only fit so much context into a comment. I'm not even saying they're "doing it wrong", but that they are in a pickle. Of course interest rates are low globally and it's not just domestic capital bidding up prices.
> In the US the amount of money in mutual funds, hedge funds, ETFs, insurance companies, 401Ks etc has exploded while supply has decreased.
Well alright, but why has it exploded? Why do all these allocations into riskier asset classes take place? Is it all just greed, or is it the interest rate environment?