Why low rates are not good...

[Jon Q.]

"Risk taking generates growth by moving resources to enterprises which create future jobs and consumption opportunities.

Without stable and transparent economic roles that allow and encourage a reasonable return for risk taking, growth will not occur, as even wrong entrepreneurs will refuse to take risk.

Low interest rates do not encourage creative risk taking, but create just more highly leveraged investments in low risk instruments. Hence the leverage to risk taking created by the Fed's low rate policies do not result in productivity. It just distorts temperate risk taking."

-Dr. Peter Linneman