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Mysterious: Latest memo from Howard Marks on negative interest rates

15 pointsby sumgameover 5 years ago

2 comments

monkeydreamsover 5 years ago
This is an interesting read.<p>To my mind the current race to negative rates appears to be an outcome of the ubiquity of a previous solution. Many countries have eschewed Keynesian stimulus in favour of monetary policy (due to debt cycles, etc and the difficulty in weaning the citizenry off stimulus when it becomes unnecessary). This preference became dogma as monetary policy successes grew. This dogma has led to ubiquity and, thus, the weaknesses of this approach are now becoming obvious.<p>I think negative interest rates will begin a march back toward fiscal stimulus. One day we might reach a balance but I think in 25 years time many government treasuries will be overrun with fiscal stimulus in the form of spending and the monetarists will be bemoaning the enormous debt that will almost inevitably follow.
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harelover 5 years ago
I thought it was a memo from Howard Marks AKA Mr. Nice (<a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Howard_Marks" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Howard_Marks</a>). I couldn&#x27;t understand what&#x27;s an interest in interest rates to do with him. Took me a few moments...