More concretely: It may well be true that markets for, say, mortgage-backed securities are more likely to behave erratically when interest rates are very low. But in a world of low interest rates, what function do those markets serve? Their supposed purpose is to make it easier for people to get home loans. But in a world of very low interest rates, loans are, by definition, easy to get. Again, with abundant liquidity, stocks may get bubbly. But in a world of abundant liquidity, what problem is the existence of stock markets solving? If anyone with a calling to run a business can readily start one with a loan, why support a special group of business owners? Yes, in a world where bearing risk is cheap, specialist risk-bearers are likely to go a bit nuts. But if risk is already cheap, why are we employing all these specialists?
The problem is, the liquidity specialists don’t want to go away. From finance’s point of view, permanently low interest rates are removing their economic reason for being — which they know eventually is likely to remove their power and privileges too. So we get all these arguments that boil down to: Money must be kept scarce so that the private money-sellers can stay in business.”
house of the rising sun / air shield construction
i guess the sun can have something to do with heating air????
i guess shitty movies will make me unbeatable at mario kart (?????)
Peter Murphy. my stand is just called Peter fucking Murphy
Hungry Heart / Wraith Physiology
Considering my username that’s just scary accurate…..
The Associates / Soul Exchange
basically, I sound like Capitalism
I will be back in the USA by 20 November. This will give me enough time to visit Indonesia, Vietnam, and Cambodia after I’m done being a teacher.