More money than anyone imagined: an explanation for why the bubble never burst

Re:More money than anyone imagined: an explanation for why t... by robocat on Friday July 26, 2019 @04:38PM (#20538150)

> People shouldn't be surprised that SOOO much money is sloshing around looking for increasingly risky returns

Surely investors demand an interest rate that is higher than the risk. Gross simplification: their actual expected return is the difference between the sticker rate and the risk e.g. if risk of default is 2%, that sets lower limit on interest rate. If investor seeks return of 5% return then interest rate needs to be 7% (simplification).

So saying investors are seeking more risk has no meaning to me. Saying investors are willing to accept lower returns for the same risk makes sense.

Can someone with investment experience say that more clearly?

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Re:More money than anyone imagined: an explanation for why t... by robocat on Sunday July 28, 2019 @04:19PM (#20549630)

Negative interest rates on bonds show that investors are willing to get less return than the risk.

https://news.ycombinator.com/item?id=20547731

But surely that it isn't money "looking" for risk, it is money that can't find less risky investments?

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