Sunday, August 20, 2017

Interest hike

It is great for fixed income retirees to raise it to 3% (the average inflation rate). But, it is bad for business (easy money to finance projects) / house builders. The market may crash due to our record-high margin debts.

That's why we have market cycles. When it goes to extreme, the market will react (crash in many cases). The Fed does not want to crash the market.

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