tag:blogger.com,1999:blog-5977100937974295832.post4764423966802785126..comments2023-10-03T12:32:51.778-04:00Comments on Confessions of a Street Pharmacist: Awash in red inkDivemedichttp://www.blogger.com/profile/14583007051962299381noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5977100937974295832.post-27891402590019920972016-10-16T13:46:33.341-04:002016-10-16T13:46:33.341-04:00As I like to say, it's not that bad. It's...As I like to say, it's not that bad. It's worse. <br /><br />In setting the interest rates artificially low, the Fed has removed the information feedback on prices that an economy needs. Our economy now is completely broken; all sorts of malinvestments have happened because no one gets the feedback of what anything should actually cost. Debt is insanely high because with debt being free, a company can buy now instead of improving their business or their products. They can borrow money, buy back stock, pay bonuses or any other kind of spending they wouldn't do if there were real costs involved. If (when) interest rates rise, it's not just the fed.gov that will be in a world of hurt, businesses will. No one in the fed originally thought they'd have to keep rates this low this long, but now they appear trapped at zero. <br /><br />The alternative to the disruption a return to real interest rates would cause is to keep rates low and just ride the economy until it collapses. <br /><br />As you say, our days are numbered. We just don't get to see the number. <br /><br />SiGraybeardhttps://www.blogger.com/profile/00280583031339062059noreply@blogger.com