France just had legislative elections and they are going the American way, right now.
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Politics aside, I think that our free market has caused serious mis-allocation of resources. When money is cheap, it’s easy to spend other people’s money on pie-in-the-sky projects. High tech is mostly fluff.
Let me give you an example. I know of a company that spent a bundle bringing fiber to the desktop of every employee a few years back. They complete the project and gigabit ethernet is available over copper at 1/10th the price. Money down the drain, but that’s OK because, there’s more money coming.
Biotech is another dot-con waiting to happen. All those drugs don’t cure anything and aren’t anymore effective than the existing medication.
We have lots of “hope” industries and fewer “real” industries. When we run out of hope then the values will come crashing.
Sure, higher rates will hurt a lot of people as the market adjusts. But that’s the reality of a free market. Higher rates will cause us to invest more in Warren Buffet stuff instead of dot-con industries — selling overvalued stocks and houses to each other, the value of which is only what the next buyer is willing to pay.
