Isn't that exactly what happened with home ownership? Everyone levers up to buy a home, real estate goes into a bubble, and when it would normally crash, the government comes out in force with grants and easy credit programs ("Making Home Affordable" etc) because those malinvestors dominate the voting pool.
Re:The Battle of GameStop
by imtringued on Tuesday January 26, 2021 @03:39PM
(#25920775)
That's basically the reason why interest rates should be above 0% right now. Inflation is mild but it is still higher than 0%. I consider it extremely foolish of the Fed that the interest rates aren't at least at 0.5% just to send a signal that the easy money is slowly disappearing.
That easy money is driving malinvestment and it will just fuel any future bubble that inevitably ends up popping.
And this is for a global pandemic. You think they're gonna do anything if people choose to make risky-ass bets that don't pan out?