Central Banks Waited Too Long To Normalize Rates
Central Banks need to normalize rates ASAP, get financial markets back to a normal rate structure, and incentivize healthy lending practices in the actual economy as opposed to incentivizing poor capital allocation strategies like negative yield chasing nonsense.
Video Length: 00:09:15
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I agree, but the Fed has forces of its own and other forces that result in low rates for long bonds. One such force is the demand for long bonds as collateral in the derivatives markets. That demand is huge, causing the long rates to stay low. I don't see how that can be fixed as long as long bonds are permitted to be used in this way.