@TheStalwart @markets @ranjanxroy I think even this overstates the case. You say savings flowed into USTs and DD as tho investments into DD wouldn’t have happened otherwise. Biggest tech bubble was at 5.5% rates. As Mark Dow says, the connection is more duration of the expansion leading to rising risk tolerance.
@TheStalwart @markets @ranjanxroy So to me, the connection is that the Fed didn’t kill the expansion, the expansion lasted a long time, thus risk tolerances rose throughout the decade.
@TheStalwart @markets @ranjanxroy That low rates and the bogeyman “search for yield” leads to increased investment in venture is a zombie idea
