In building economy around the world, we are indeed working on asset management. Land value increases when we connect water, sewer and electricity near your land. Your house value increases when new businesses open near your town. Make renovations on your house when your station in life improves, further increases the value of your house. We know and have been doing it, since 1993.
When it comes to investments on Wall street; we have productivity improvements in the past decade dependent on computers replacing inexperienced workers. The obscene profits and subsequent reinvestment in production capacity is the true asset appreciation.
Interest rate, dollar devaluation and credit allowance are the finely tuned adjustments that we move around fixed valuation of true economic scale. As more credits are allowed, the dollar devaluation and interest rate decline must happen.
If interest rate suddenly increased to make more profit then the economy collapses. Every time FEDS do foolish things to punish the masses or a few individuals at commodity trading exchanges, the economy collapses.
So, responsible people on Wall street are looking at the new economy policy and its adjustments to learn what is the guide band for deviation. Never too much or too late. Hold still until slight adjustment is needed. Quick profit soon disappears; because everything is done, just in time or hand to mouth, no extra liquidity available for anything frivolous, when economy is growing.
We have plenty of liquidity when central government is involved at all times. It is the safety net, that any sane planners must have. |
