Interesting points.
I cannot disagree with them from a real world perspective.
Living in main street the logic is in sync with what I see on the streets.
Point 1 is an interesting one.
The tax cuts supposedly going to mortgages. Banks would like that but cannot see it would not be true.
With low interest rates prices rise and past household purchase loans are locked in at historical cost.
With low interest rates though, prices rise especially on consumables so less consumption makes sense as things get expensive. Consequentially, people with bigger rates on loans directed to pay off mortgages so there are a number of reasons why there would be low business activity and extra funds go to paying off mortgages!!
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