Low interest rate era

[moneymakeover]

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?

 

[moneymakeover]

No interest

 

[joe sod]

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]

Economist article

Subscriber but can be reached for free

https://www.economist.com/news/brie...investments-expensive-bubble-without-any-fizz

 

[moneymakeover]

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

 

[Firefly]

Will rates gradually rise?

You would imagine they should, but those to lose the most are those governments like ourselves that have borrowed too much!