8 ms·
The excess liquidity comes from low rates. No serious financial investor thinks otherwise
by greatpostman 4y ago
The excess liquidity comes from low rates. No serious financial investor thinks otherwise
- thechao 4y agoI had literally never thought of this in any way. I've just finished reading two papers: one which shows that net-investment isn't really correlated to savings or interest rates which exactly supports your position (with data!); and, a second which shows that the ratio of old-to-young people is an incredibly good predictor of interest rates (with data!). You're both right? I suspect that means there must be a third option.
- bryanlarsen 4y ago$6T of QE is about 1/10th the size of the US bond market and 1/20th the size of the US stock market.