Asset prices are collapsing. It makes sense to borrow at 5% and invest at 8%. It doesn't make sense to borrow at 1% and invest at -15%. It is called pushing on a string by Keynes. |
RE: What stops fed rate cut to fix credit crunch? (SuperCycleBea
(2007-08-16 22:57:32) 评论 (2)Asset prices are collapsing. It makes sense to borrow at 5% and invest at 8%. It doesn't make sense to borrow at 1% and invest at -15%. It is called pushing on a string by Keynes. |