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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (75779)3/8/2008 7:25:38 AM
From: Crimson Ghost  Read Replies (1) | Respond to of 116555
 
Mish



Ultra low interest rates were and are a key factor behind the ongoing capital market crisis.

If real rates were even modestly positive, funds would not have to take huge risks to acheive half war decent returns.

What we are seeing today is largely the blowback from many years of artificially low rates aimed at propping up various bubbles and preventing a recession at all costs.



To: mishedlo who wrote (75779)3/8/2008 7:26:58 AM
From: elmatador  Respond to of 116555
 
Does Stability Breed Instability? Mancur Olson on stability:
The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities

Did not get Economics Nobel prize due to its views not being liked in Sweden.

See his work How bright are the northern lights?: Some questions about Sweden