“I think we all have to at least consider the possibility that we have entered an era of “permanent” low long term interest rates. I can’t even fathom a fed funds rate above 2-3% at this point. Look at Japan.”
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I am definitely in the camp of believers of low rates for years to come. After the dot-com crash we had an FFR at 3% or less for about 4 years. That’s quite awhile. If you believe the situation is far worse now, there is certainly a good argument for an even longer run of low rates. We are now only about a year and half into an FFR of 3% or less.