The Good Times With Proper Lending Standards?
Anyone that thinks low interest rates are good for the economy isn't looking at all the effects. The only ones benefiting are those able to refinance at lower rates. For the rest of the economy they are creating unsustainable assumptions, causing investors to take unreasonable risks looking for better returns, and creating debt slaves for the unestablished.
We've been riding the interest rates down since the 80s. The numbers look great the first couple times the game is played and since debt is supposed to be paid back, those numbers are borrowed numbers.
Low interest rates create bad things in an economy, but that was coupled with throwing away all lending standards. Much of this money that is being lost was just given to people without a hope of it ever being repaid. There would have been paid in the economy because of the nature of low interest debt even with proper lending standards. Now there is a combination, debt slaves and for the unqualified lotter winfalls that didn't really go to individuals who borrowed, but the people working in those industries.
Low interest rates totally destroy labour "equality." All this"free" money enabled sectors that were first in line to have unsustainable wages. Open your eyes and look at the difference in wage increases in different occupations. And now those industries will feel the most pain as their wage retract the most to get in line with the rest of the wages.
Proper lending standards would have some of this crap in line. Truly proper lending standards would have kept it all in line, except people are so accepting of risky standards as ok, most don't even know what a proper lending standard is. What was promoted as a proper lending standard really was a debt slave lending standard. A proper lending standard is a truly affordable lending standard.