Wednesday, September 24, 2014

When Will Interest Rates Rise And What Will Cause Them To Rise? | Seeking Alpha

When Will Interest Rates Rise And What Will Cause Them To Rise? | Seeking Alpha



Here is an outstanding article on why inflation will stay low along with interest rates.  As the old saying goes, "when interest is low, stocks will grow."  Everyone knows that stocks are overbought, but bonds and savings accounts are paying a lot less than stocks.  Therefore, stocks will continue to rise in spite of everything because there is no better alternative.



Banks are holding their money and they are not making loans to individuals.  Credit is a whole lot tighter since the Great Recession of 2008-2009.  Moreover, banks are not loaning to corporations either because they don't have much confidence in the economy.  So, there is no pressure on interest rates to rise.

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