One day, the federal government won't be able to keep all these interest rates artificially low. The Chinese government, our major financier, is growing restless. The dollar's sharp decline relative to other currencies is an ominous sign. If this problem accelerates, it will put pressure on the Fed to let interest rates rise to protect the dollar from a collapse.
But until rates go up, Wall Street will be chowing down on essentially free money, while fixed-income people living off their investments will have to eat into their capital, take more risk or reduce their standard of living. A nice reward from their government for a lifetime of saving. Thanks for nothing, guys.
Tuesday, October 20, 2009
From today's Washington Post: