0% Interest Rates....What do people do ?

Discussion in 'Economics' started by libertad, Oct 7, 2009.

  1. People try things with their money....when money itself pays 0%....

    Usually they will either consume or invest and grow tired of getting 0%....

    If TRUST was present in the equity markets they would be moving higher than they already have....

    So the pending question becomes....just what is it that people are going to do with their 0% money....


    1) Move equity markets up another 10% ?


    2) Get rid of all debt ?


    3) Buy more WMT goods ?


    4) Most people do not have this money....is in the hands of the few ?
    thus a moot point ....?


    Farber's take....

    http://www.investmentpostcards.com/2009/10/07/marc-faber-on-the-economy-and-financial-markets/


    Since the majority are usually always late and wrong....just what is it that will be blown out to the upside ?
    Gold ?......etc....All trash high yields ? etc...?


    ......................................................

    Different take....

    The US wish list.....

    1) 15% C tax only

    2) New Non-gameable Electronic Direct Access Defragmented Lower Cost Nontaxable Exchange

    3) Good riddance to the two party system....

    4) Eliminate the IRS, SEC....


    Items 1-4 would take the US to where it needs to go....
     
  2. Has the world turned into one gigantic Iceland?:)

    0% Yen loan, 15% Iceland Krona bond...

    Remember what happened to Iceland when the tide turned.