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Higher interest rates are needed to avoid situations, like today, where lenders and investors bet on ever increasing asset prices.

In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (jeromeguillet@yahoo.fr) on Sat May 19th, 2007 at 12:53:46 PM EST
[ Parent ]
Not really. The problem is not high interest rates, but expectations of consistently high returns and overly concentrated lending. in a healthy lending market, one should see super low interest rates for no risk investments and competition among lenders to discover interesting projects. Instead we see a huge drain on borrowers with massive effort to liquidize the debts so that lenders can dump risks.
by rootless2 (sansracine#yahoo.fr) on Sat May 19th, 2007 at 01:02:34 PM EST
[ Parent ]

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