late wrote:
That also didn't make sense.
Here -- what doesn't make sense is that the whole *&#$@ *system* is about to close the back cover because the capitalist economy can't even *flow* without continuous cheap / free subsidies for needed liquidity and to make everything nice and tidy on *paper*.
The system can't be sustained *without* government deficit spending, for liquidity (low Federal Funds rate), and it can't be sustained *with* government deficit spending, because as things were there was no further 'down' to even *go* with the interest rate, by the Fed -- the low interest rate meaning full government subsidies for *whatever*, which introduced everyone to *zombie companies* and *zombie banks*.
If *high* interest rates are a wet-blanket, but *low* interest rates can only go so low (like limbo), then *what's left* -- ?
My pet theory is that a sustained low interest rate regime would effectively be the end of central banking itself, and any *higher* interest rate than that would be *even worse*, for obvious reasons.