Posted Jan 10, 2017, 6:30 PM
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BANNED
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Join Date: Jan 2009
Location: The Lower-48
Posts: 4,789
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Quote:
Originally Posted by ChargerCarl
I don't want to hijack this thread but you have a fundamental misunderstanding of monetary policy. An interest rate is just a price, it's not really best understood causal. It represents an equilibrium between supply and demand for capital. Right now we live in a world awash in savings with not enough investment opportunities to put those savings to good work, so we have a falling equilibrium rate which is why our rates are so low AND we have record low inflation.
If the Fed were to announce tomorrow that they're jacking up rates tomorrow it would slow construction, yes, but only by reducing national income.
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Ok, so you agree with me.
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