yes yes, but
whenever central planners set the wrong pricing for short term money over too long an elapsed time, the wrong pricing for short term credit money must always affect, mostly wrongly, the pricing for long term credit monies, as well as pricing for all other asset which can be evaluated by application of the all-pervasive net present value / discount modelling
mq, i am surprised that above piece of trivial truth which should not escape the mind of even a human slug managed, somehow, inexplicably, to slip by your keen and discerning mind
re <<It was obvious to casual observers way back in 2005 that house prices were stupidly high>>
that is why i sold out of the empire in april of 2006, and it was equally obvious to the same casual observers way back in 2005, 2004, 2003, 2002, 2001, 2000, and 1999 that cost of credit monies were too low, and price of gold was not high enough. |
