Interest rates are set to fall in order to help the economy. There are opinions that the interest rate cuts got us into this mess. While they eased the recent crises, they did not allow for a natural process to complete. There was no real market correction. That led to every new crash being deeper and harder. And the rates kept coming down to ease the pain.
And soon the rates could approach 0. Well, the question is – what happens when the next crisis hits? Will central banks then set the interest rate to a negative value? Will they start charging money in order to keep money? Interesting.
Well, if not that then the next downfall could end up badly.
Posts
No comments:
Post a Comment