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I think we also need to consider the effect of keeping interest rates artificially low and near zero for 15 years has had on this "boom".
by snarf21 5y ago
I think we also need to consider the effect of keeping interest rates artificially low and near zero for 15 years has had on this "boom".
- weatherlite 5y agoIt goes even further than that, rates are low for about 40 years now. Yes they are super low now at around 0% , but when/if they go back up to 4-5% that is still historically low.
- imtringued 5y agoYou should consider the opposite. Keeping interest rates artificially high by borrowing ever more money. I don't know where people get this idea that reducing demand for borrowing and increasing savings is supposed to raise the interest rate. Borrowing more money increases the demand for capital and thereby the interest rate. If the government didn't have to borrow a dollar for every dollar that was taken out of circulation the interest rate would be negative and people would be discouraged from saving more than others want to be in debt.