Zeev's Turnips Patch-No Politics (ZEEV)

[S Chun-Li]

Seems the public debt is forcing the fed to keep low rates.

Govt constantly needs to sell new debt to pay its current ones. It gets a better deal with lower rates.

But that is not helping the economy to rid itself of excess capacity. It is keeping the large companies going with easy credit, making it harder for new innovative companies and technologies to emerge.

I agree with Zeev that a soft landing is preferable to ridding all the excesses at once, but I suspect that current plan is too soft.

Unviable business plans should suffer a darwinian weeding out process, not be allowed to survive by selling junk debt and junk stock because the investment landscape is manipulated to favour such investments. And unviable public deficit policies should not be influencing interest rates either.