Turtle Time

Any number of times (here's one) these endeavors have asserted that the 1%'s craving for guaranteed return at high rates will be spiked by their lemming-like chasing of Treasuries. With the collapse of the richer alternative, home mortgages, the 1% (which includes corporations) continue to avoid physical investment. In due time, this tsunami of cash would push down the return on Treasuries. Supply and demand, and all that.

Not only that, these endeavors have warned that the Fed's belief that it could affect long-term rates by fiddling with, i.e. raising, the over-night rate was beyond stupid. Fed's elite have been watching the flight from physical investment for years, yet they continued to assert that the problem was one they could solve.

The Fed can't convince stupid CxOs to invest in physical capital when they refuse to. The only way to get capitalists to grow (net) real investment is to grow aggregate demand for end-user goods. Guess how to do that?