Low Interest Rates And Unintended Consequences

AdvancingTime

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
 

EdwardBaiamonte

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
well I think it not so massive since few are taking advantage. The money is not finding its way into the economy despite the low rates.

Also, there is no choice but low rates.

Lastly, I do agree though that govt should get hands off asap so resources will be allocated on a competitive basic rather than by random govt policy.
 

Mr. H.

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
well I think it not so massive since few are taking advantage. The money is not finding its way into the economy despite the low rates.

Also, there is no choice but low rates.

Lastly, I do agree though that govt should get hands off asap so resources will be allocated on a competitive basic rather than by random govt policy.
Why put money in a bank when rates are near zero?

Why invest in brick and mortar Main Street when there's more money to be had on Wall Street?

Despite the number spinning by the White House, this economy is still in the shitter. There's no direction, no certainty, no confidence.

Unless you're building wind farms or solar installations with government backed debt, why the hell take any risk these days?
 

EdwardBaiamonte

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
well its not so massive since few are taking advantage. The money is not finding its way into the economy despite the low rates.

Also, there is no choice but low rates.

Lastly, I do agree though that govt should get hands off asap so resources will be allocated on a competitive basis rather than by random govt policy
 

EdwardBaiamonte

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
well I think it not so massive since few are taking advantage. The money is not finding its way into the economy despite the low rates.

Also, there is no choice but low rates.

Lastly, I do agree though that govt should get hands off asap so resources will be allocated on a competitive basic rather than by random govt policy.
Why put money in a bank when rates are near zero?

Why invest in brick and mortar Main Street when there's more money to be had on Wall Street?

Despite the number spinning by the White House, this economy is still in the shitter. There's no direction, no certainty, no confidence.

Unless you're building wind farms or solar installations with government backed debt, why the hell take any risk these days?
well Tesla and Boeing and Google and many many other are taking risks. Economy is growing at 2% rather than 4% thanks to Obama but its a lot better than 0% or recession. Despite Obama there is still enough capitalist activity to manage slight growth. Today Ted Cruz promised Republican capitalism could get college grads 5-6 job offers at graduation!! I beleive him.
 

sealybobo

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In a recent article written by bond king Bill Gross titled "Going To the Dogs" Gross describes some of the current economic conditions we face. His thoughts strongly dovetail with my concerns as to how these low rates distort and cause massive misallocation of resources throughout the economy.

The growth in sub-prime auto loans is a glaring confirmation of this and the main reason for surging sales in the auto sector. This effort to offset the dwindling buying power of the public sector by encouraging them to take on more debt by easing terms and artificially low interest rates will not end well. Below is an article that looks deeper into the flaws in this policy.

http://brucewilds.blogspot.com/2015/03/low-interest-rates-and-unintended.html
well I think it not so massive since few are taking advantage. The money is not finding its way into the economy despite the low rates.

Also, there is no choice but low rates.

Lastly, I do agree though that govt should get hands off asap so resources will be allocated on a competitive basic rather than by random govt policy.
Why put money in a bank when rates are near zero?

Why invest in brick and mortar Main Street when there's more money to be had on Wall Street?

Despite the number spinning by the White House, this economy is still in the shitter. There's no direction, no certainty, no confidence.

Unless you're building wind farms or solar installations with government backed debt, why the hell take any risk these days?
Same thing happened in 2019. Only 2.3% growth.
 

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