“Scarcity of credit is the source of sound risk assessment and the discipline of aligning interest rates to risk and inflation. Manipulating rates to near-zero and opening the credit floodgates has incentivized everything sound economic policy avoids: moral hazard, speculation, leverage and reliance on marginal credit expansion for profits and ‘growth.’ ‘Growth’ that depends on manipulated interest rates and easy credit is a sand castle awaiting the rising tide; its destruction is assured.”
http://charleshughsmith.blogspot.com/2013/09/the-big-picture-economy-part-3-scarcity.html
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