Pessimist or a Realist? Our Present Situation – Part 2, by The Lone Canadian
(Continued from Part 1.) While we’re on the subject of interest rates, lets explore low interest rates. I’ve mentioned that the government, through the Fed, has kept them artificially low since about 2008. Now, the general thought was that low interest rates would stimulate the economy. Low interest rates mean that you can buy that bigger house, or new car. It also means that businesses can expand because the risk on a loan is lower. It means that new businesses can start up because people can more easily qualify for a loan, and their payments are relatively low, so its …