Want to place a bet on how long the Federal Reserve’s current policy of zero percent interest rates (“ZIRP”) continues?
Consider who it helps — and hurts:
–U.S. Treasury (debt service kept artificially low)
— Wall Street (free money — how nice!)
–Mega-Corp Borrowers (ditto. IBM just borrowed more than $1 billion for . . . 1%!!)
–Home owners (*kind of)
–Retirees and other savers
My money’s on zero percent interest rates . . .
*Historically, cheap mortgages stimulate housing demand. But cheap money can be trumped by other factors, like falling asset prices, high unemployment, etc.