You've got a serious correlation = causation problem going on there.plodder wrote: ↑Fri Jan 29, 2021 7:26 pmOK, look. You need to stop and listen to yourself for a bit.lpm wrote: ↑Fri Jan 29, 2021 3:56 pm
Global interest rates have been very very low due to the financial crash, followed by being knocked down again by the pandemic. But the margins we all pay are also getting lower and lower. We used to pay 6% or 8% margin on credit cards which has been cut to 3% or 4% by the sophistication of predicting risk by the financial markets. That's the real saving we are all getting.
You’re saying that interest rates are historically low because of two things: the economy is f.cked (due the financial services sector mispricing risk) and because financial services allow us to sail closer to the wind than ever before due to their amazing sophistication at pricing risk?
Are you sure you don’t want to backpedal a little?
Unless you're an anti-Semitic Corbynite, global bankers are not the ruling powers of the world. Governments are. Governments control economies through spending, taxing, interest rates and money supply.
Sadly we have a German superpower obsessed with solving international imbalances by the imposition of severe austerity, causing several years of economic devastation in the Eurozone. In the US superpower there's a near fascist party that imposes austerity upon opponents while embracing government handouts to the ultra rich. And in the China superpower we have the biggest global imbalance in history - a massive exporting economy with a huge savings rate, sending funds flooding out into the rest of the world which sends asset prices soaring and yields on those assets plummeting.
Meanwhile in a pathetic little island in the North Sea there's been a decade of sh.t government with absurd austerity and poor investment opportunities.
The notion that evil hedge fund managers are wrecking our lives is silly childishness. Ultimately we're all being drowned by the flood of Chinese savings - and until that vast imbalance of China's huge trading surplus offset by financial deficit solves itself over the coming decades, we're all in a pretty nasty situation.