Interest is the price of money.
Like all other commodities.
Has its own market.
Supply and demand.
The more people borrow.
The higher rates will rise.
The less they borrow.
The lower rates will go.
But since we have our friendly neighbor.
To artificially suppress rates.
The economy and markets.
Are distorted beyond reasoning.
What happens when interest rates rise.
Due to free market forces?
- Bonds crash.
- Stocks slide downhill.
- Real estate deflate.
- Inflation hits.
I’m a bit tired of writing about interest rates.
We’re amid uncertain financial times.
It’s time for liquidation and consolidation.
Not expansion in the markets.