[quote=SK in CV][quote=CA renter]
That’s not to say that there shouldn’t be regulations and restrictions on the supply side, but those products would not have been as prevalent, nor as damaging, if the Fed hadn’t poured on the gasoline and spurred demand.
[/quote]
Just one question. How do lower interest rates spur demand for investors in interest bearing securities? It should be just the opposite. Do investors chase after lower yielding dividend paying stocks? Lower the dividend, higher the demand?[/quote]
Like spdrun said, it stokes the demand for **riskier** products that offer higher yields.
