The idea behind keeping interest rates near zero is to force everyone into the stock market. (Gains are below inflation from savings accounts, CDs, and most other interest-based investments.)
So now we have people who are already near retirement or already in retirement who have a lot of their assets exposed to massive potential losses. Ditto for a lot of pension funds.
One big market crash involving a lot of shorting by the big investors will result in a huge transfer of wealth from the middle class folks who sacrificed and saved for retirement and folks who rely on pensions to the big investors.
Grandma and Grandpa may have to live off ramen and dog food in retirement, but the big investors can buy another vacation house and yacht, so it's all cool, right?
The idea behind keeping interest rates near zero is to force everyone into the stock market. (Gains are below inflation from savings accounts, CDs, and most other interest-based investments.)
So now we have people who are already near retirement or already in retirement who have a lot of their assets exposed to massive potential losses. Ditto for a lot of pension funds.
One big market crash involving a lot of shorting by the big investors will result in a huge transfer of wealth from the middle class folks who sacrificed and saved for retirement and folks who rely on pensions to the big investors.
Grandma and Grandpa may have to live off ramen and dog food in retirement, but the big investors can buy another vacation house and yacht, so it's all cool, right?