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Comment by hsienmaneja | Hacker News Reader

Why can’t the fed keep interest rates low for the next, say, 15 years? That seems implied from their statements.

The market can remain irrational longer than you can remain solvent. Any bet that involves unlimited or outsized risk needs to always consider the possibility of being catastrophically wrong. This includes selling volatility, shorting delta, etc

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> Why can’t the fed keep interest rates low for the next, say, 15 years?

Because inflation, the same reason the Fed has started raising rates and signalled that more raises are likely. (Of course, that could change of inflation crashed or the other side of the Fed mandate created pressure by unemployment spiking, but those each present issues, too.)

Because the fed isnt in control. They just made enough people feel like they were, whih creates a feedback loop. Just look at how the BOJ lost control of their rate curve, and now trillions of long bonds with a zero yield (only potential financial loss) are held by all their major banks... Its an avalanche in the waiting. Can you borrow for 0%?? So the fed doesnt control credit that much after all.

Shorting isnt a good idea either since all the counterparties to those contracts will be insolvent. Buy lead, gasoline, gold and seeds. Collect rainwater and plant food. That s how bad its going to be this time. 1929 was childs play in comparison.

Buy Bitcoin.

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