Low interest rates mess with stock prices

Here is a recent op ed that ran in a Vancouver daily. It argues that the Fed, by holding interest rates low, drive people to the stock market since the bank offers no return. This forces middle class Americans and the eldery to take risks they can’t afford. It also drives up stock prices beyond their real value thus setting companies up for a serious crash once investors see that the company isn’t all it’s cracked up to be.



Also, reprinted in Kearney Hub as “Facebook stock locked sexy, but it’s falling fast.”



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s