“At this point, nearly every facet of the American economy has reshaped itself around near-zero interest rates,” Rogé Karma writes. “As with any dependency, withdrawal will be painful.” [https://theatln.tc/vqfImvbf](https://theatln.tc/vqfImvbf)
Wait, does this mean NFTs, crypto, “top” hedge funds capitalizing every Stanford dropout with rich parents and an “Uber for X sector” idea running zero DD, triple long tech ETFs, 90% LTV real estate, PE funds with max NAV loans, oh and no work for distressed investors will end?
Well good for those who already bought assets on easy money.
I think [Yield Curve Control](https://www.investopedia.com/what-is-yield-curve-control-4797189 ‘Yield curve control (YCC) involves targeting a longer-term interest rate by a central bank, then buying or selling as many bonds as necessary to hit that rate target.’) is a Ponzi, because of the need for new money to buy debt from debt markets. Unlike a regular Ponzi scheme, the supply of new money never ends since the source of the new money is a digital money printer. But it’s still a Ponzi.
>Ponzi schemes require a constant flow of new money to sustain themselves
Japan is exhibit “A”. But we’ve been copying them, so we’ll see when push comes to shove, whether the era of easy money is over. A lot of articles on CNBC clamor for the return of QE.
Wait,
I agree with something written about the economy that was published in the Atlantic?
I feel so dirty.
But yeah, this is indisputably true.
Low rates are bad and they distorted the entire economy.
Much pain is coming. But it’s a good and necessary thing.
5 comments
“At this point, nearly every facet of the American economy has reshaped itself around near-zero interest rates,” Rogé Karma writes. “As with any dependency, withdrawal will be painful.” [https://theatln.tc/vqfImvbf](https://theatln.tc/vqfImvbf)
Wait, does this mean NFTs, crypto, “top” hedge funds capitalizing every Stanford dropout with rich parents and an “Uber for X sector” idea running zero DD, triple long tech ETFs, 90% LTV real estate, PE funds with max NAV loans, oh and no work for distressed investors will end?
Well good for those who already bought assets on easy money.
I think [Yield Curve Control](https://www.investopedia.com/what-is-yield-curve-control-4797189 ‘Yield curve control (YCC) involves targeting a longer-term interest rate by a central bank, then buying or selling as many bonds as necessary to hit that rate target.’) is a Ponzi, because of the need for new money to buy debt from debt markets. Unlike a regular Ponzi scheme, the supply of new money never ends since the source of the new money is a digital money printer. But it’s still a Ponzi.
>Ponzi schemes require a constant flow of new money to sustain themselves
Japan is exhibit “A”. But we’ve been copying them, so we’ll see when push comes to shove, whether the era of easy money is over. A lot of articles on CNBC clamor for the return of QE.
Wait,
I agree with something written about the economy that was published in the Atlantic?
I feel so dirty.
But yeah, this is indisputably true.
Low rates are bad and they distorted the entire economy.
Much pain is coming. But it’s a good and necessary thing.