From Investing.com: 2025-01-06 12:19:00

Low rates and loose credit are essential for the economy, fueling asset bubbles and enabling marginal buyers to enter the market. This dynamic led to the Housing Bubble #1 in 2003-2007, with devastating consequences when it burst. High interest rates and tight credit force financial discipline and exclude risky ventures, leading to a healthier economy. However, low rates and loose credit inject default and losses into the system, triggering bailouts for the big players while individual borrowers are left to suffer. The current reliance on low rates to prop up the wreckage of previous financial crises is a risky gamble with unknown consequences.



Read more at Investing.com: High Interest Rates are Healthy, Low Rates are Poison