I read an interesting article on Market Ticker regarding rates....

I read an interesting article on Market Ticker regarding rates. Essentially, the last 40 years of business has seen declining rates, which means that not only could corporations borrow to expand/trade, but if they kept trading, they could keep on refinancing and bring their repayments down, EVEN IF THEY WERE NOT PRODUCTIVE OR PROFITABLE.

A return to 'normal' rates will spell disaster for companies that have become fat and useless of the teat of easy credit and offshoring. I personally hope that ESG and other diversity initiatives are the first to be axed. Obama bailing out companies (in exchange for funding his pet projects that he couldn't secure through congress) is absolutely criminal and is the specific act when we say the 'can was kicked down the road' in 2008.

Socially, we have seen something similar with housing prices, where a family can be not particularly productive but has coasted through the middle class easy life via home equity. Unfortunately, this is short term gain long term pain as this asset appreciate is based on selling out any infrastructure and services that makes a nation sovereign, self reliant and sustainable. The next few generations of the ever shrinking middle class will NOT benefit from housing equity, as it has been carved down by the following: no more exponential price growth; interest repayments; inheritance taxes; boomer generation squandering money and not passing on a meaningful inheritance.

I haven't even touched on the welfare and interest bill left for the newer generations, while simultaneously locking them out of meaningful careers and opportunities to start families.