[quote=FlyerInHi][quote=CA renter] but then interest rates would go down again if money flows to bonds.[/quote]
Yes, that’s why I don’t expect high interest rates on the horizon. Cheap money in Europe, China, Japan would cause a carry trade to the US where there’s security.
So they people who said that Fed easing would cause skyrocketing interest rates were wrong. They’ve been wrong since 2008.
Fed and stimulus policies were actually very appropriate in the aftermath of the financial crisis. If anything, the Federal government was too timid. If we had fought the 2008 financial crisis like we fought WWII we would now have a modern network of new airports and high speed rail.
A friend of mine went of China for the first time… He came back very impressed with the infrastructure. Didn’t realize that China was that advanced. The trip changed his mind about our need for better infrastructure.
CAr, one reason there is speculation in assets and commodities is because there is a dearth of productive assets to invest in (factories, infrastructure, etc…)[/quote]
Disagree that the Fed’s actions were appropriate, but agree that the govt was too timid (and corrupt, IMO).
Also agree that there is a dearth of productive assets in which to invest, AND that there is too much money at the top just sloshing around the world looking for places to speculate…while the world’s working people are being squeezed from both ends (lower and lower wages — real and nominal, in many cases — in an environment of rising prices).
This is a direct result of “trickle-down” economic policies and our upside-down tax policies that favor gambling over productivity. These are the leading causes of our growing wealth and income disparities; and I don’t think it will end well. You can’t have the top 1% living off the backs of the 99% for very long.
