Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
 but for 15 years!!!!!!!!!  Japan with nil interest rates is the fountain from which the carry trade flows.

As for Greenspan and Co, I just dont agree.  Our rates have been  dropping since about 1997.  I used to get 7% in a money market then and it got as low as 1%.  That forced a lot of folks into other riskier investments if they had to have the yield.  We just spent it on a house so that took care of our cash "problem".

We didn't need to go so low on rates but the liquidity was made available first for y2k and then after 9/11 to make sure the economy didn't puke.  Still, it has had some side effects of puffing real estate and other markets IMO.

The huge deflation in labor made it possible to keep these rates low without inflation.  But it was a bad bargain for many in the labor pool while making people like me richer.

by HiD on Tue Mar 27th, 2007 at 05:22:56 PM EST
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