Comment by carefree-bob
19 hours ago
Did you ever think that the reason why US debt is so high is because rates are so low and borrowing is so cheap? Higher rates are needed, and are really the only mechanism to reduce borrowing.
We are seeing asset bubbles across the board in this economy, in housing, in equities, auto loans, etc. It turns out that if you make something cheap, people buy more of it, and that includes the government.
I agree with you, and this is much better than your previous "canned response". However, this goes back to my earlier point that even historically low rates can cause economic chaos if the debt is high enough.