Lots of people who wished the natural interest rate was lower liked to blame the Fed instead of fundamentals. But if the Fed has set the interest rates too low we would have had runway inflation from an overheating economy instead of a low prime age employment % (which suggests the interest rates were too high).

No you don’t get it. Risk assets are priced from interest rates. Low interest rates inflated assets, which caused mass wealth inequality and excess wealth made by owners of capital. The picture is way more complex, we have had deflation due to outsourcing and technology. So it’s been impossible to get inflation.

This is an insane assertion, if only because the Fed is run by public financial figures.

We live in a world that is awash in capital because old people & rich people have a large amount of capital. When the supply of something is high, the price goes down. And the price of capital is interest rates.

The excess liquidity comes from low rates. No serious financial investor thinks otherwise

I had literally never thought of this in any way. I've just finished reading two papers: one which shows that net-investment isn't really correlated to savings or interest rates which exactly supports your position (with data!); and, a second which shows that the ratio of old-to-young people is an incredibly good predictor of interest rates (with data!).

You're both right? I suspect that means there must be a third option.

$6T of QE is about 1/10th the size of the US bond market and 1/20th the size of the US stock market.