How Long (Will Interest Rates Stay Low)?

9 Comments on How Long (Will Interest Rates Stay Low)?

1. Great stuff…………

2. “Merle Hazard (get it? as in moral hazard)”

   I thought it was for Merle Haggard.

   But that was fun.

3. wow, alison brown is an outstanding banjo player

4. I wonder how many 52′ truck trailers would be needed to haul .5% of interest on 22 trillion national debt in $100 bills?

5. Duh. Interest rates will remain as low as the crony capitalists want them to be until said crony capitalists start getting hanged from lamp posts.

6. Great key change.

7. Interest rates will remain low until the financial corporations have unloaded all the low rate bonds they currently hold off onto pension funds and other suckers. Mostly pension funds, because no sane person would buy this overpriced crap with their own money.

   Then rates will go eventually double digit, and at the pinnacle, the financial corporations will buy Treasury bonds that were accidentally issued at a low rate because of a decimal point error (essentially making the high rate Treasuries conveniently non-callable).

   At some point the stock market will collapse, again, and people will flee to the imagined security of bonds. The financial corporations will sell off their bonds, and but equities (again, at the bottom, of course), and the cycle will begin again with a new generation of suckers.

   Just like last time.

   This is of course, merely a baseless opinion, and should not be construed as being financial advice.

8. Trump will trigger a recession as he tries to stop the US from building more debt. Because the large financial institutions won’t get anymore Fed funny-money, interest rates will rise. For seniors, this may be a good thing. It won’t be a new recession, though. It’ll be the end of the current one we’ve had since Obama. It’ll be short lived and then the economy will really take off.

9. @Claudia: It is a takeoff on Merle Haggard, not “moral hazard”.