With or without the eurozone, U.S. interest rates would still be trading very close to historic lows. The demand for treasuries from foreign countries, U.S. corporations, older and likely permanently risk averse U.S. retail investors, along with the lack of significant inflation and strong economic growth will likely keep rates at very low rates for years to come.
There clearly is way too much fat and waste in the government. Definitely not denying that. But, what the economy needs right now is employment to help drive long-term economic growth. We need get people back to work and we can worry about productivity gains once the economy is up and running and self sufficient. The retirement of baby boomers by itself will result in significant productivity gains, however, too many of them overspent and are now occupying jobs they should have already left.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.