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Until interest rates are raised, and then the higher discount rate used to value future cash flows results in a crash of asset prices.
by wcoenen 5y ago
Until interest rates are raised, and then the higher discount rate used to value future cash flows results in a crash of asset prices.
- bradwood 5y agoWhich is not likely to happen any time soon. Just look at the palava associated with the US debt ceiling. Fed tapering and interest rate rises will either result in a US government default (which won't be allowed to happen) or more money printing (which will). Either way, we are heading for hyperinflation.
- imtringued 5y agoYeah, the hyperinflation story... Everyone seems to have forgotten what the Fed did in the 70s, namely cripple the private economy with massive interest raises. Did you really forget that QE is meant for government bonds? The short term federal funds rate for private banks and the treasury yield curve are two completely different things.