U.S. Secretly Halted JPMorgan’s Growth for Years

Re:U.S. Secretly Halted JPMorgan’s Growth for Years by pishpash on Monday October 29, 2018 @07:26AM (#18326543)

Which is not true at all. US real yield has gone from less than -1.5% on the short end [1] to around 1% recently across the yield curve. Historically it was around 2%. Not only that, the term premium is still likely negative [2]. The financial repression was real.

[1] https://www.treasury.gov/resource-center/data-chart-center/i... (Note that there was a further 80 basis point spread between nominal overnight rates and the nominal 5 year rate, so real overnight rates were really really negative.)

[2] https://fred.stlouisfed.org/series/THREEFYTP10

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Re:U.S. Secretly Halted JPMorgan’s Growth for Years by pas on Monday October 29, 2018 @08:48AM (#18327032)

This does not mean that without low interest rates things would be better. (And I'm not saying Greenspan et al. handled the early 2000s well. But I'm also not convinced that the economy's set point is the federal funds rate. I think it's just an aspect, and business fundamentals - like real aggregate demand, which is much more sensitive to disposable income than to interest rates - are much more important for growth.)

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