Low interest rate era

moneymakeover

Frequent Poster
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481
The past 5 years all over world:
Europe
USA
Interest rates have been falling

Deposit interest rates approx 0.1%

Is this unprecedented?

First what is the cause? Quantitative easing?

What is likely to happen next?

Does it auger well for stock markets?

Will rates gradually rise?

Will western world follow pattern of Japan?
 

joe sod

Frequent Poster
Messages
716
yea its a big topic, what happens as interest rates rise?, obviously not great for stock market but it will be a disaster for the bond market. I think thats the reason they can't raise rates too quickly. Therefore as always manipulation of inflation rates to make it appear that inflation not rising as much as it really is. They will probably try and exclude oil prices from inflation next using global warming as an excuse, sort of similar to what they did with cigarettes years ago.
 

moneymakeover

Frequent Poster
Messages
481
Reasons given for low interest rates:

  • High saving rates especially countries like China
  • Large numbers retirees with large cash amounts
  • Corporations sitting on large cash piles
 
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