TheCatt wrote:There's an argument that low interest rates also promote bad investment by companies as hurdle rates may be a factor of interest rates. (Cheap capital/debt/bonds, for instance, means that low return projects become profitable)
Thanks for the primer! This part caught my eye because I was hearing a guy on the radio last week talking about the "Skyscraper Curse" (I think it was). He was pointing out through the 20th century on that whenever a record breaking skyscraper was built that shortly after a massive collapse happened. It wasn't really the fault of the sky scraper, but rather the sky scraper was a symptom of the overall problem. The low interest rates and bad investments. And that around the time they finish the building, things are primed for the downward slide. Was kind of interesting.