Comment: It takes alot longer for an investment to go bust

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In reply to comment: SO the short-term funds rate (see in situ)

It takes alot longer for an investment to go bust

When the market is flooded with cheap credit. This is how structural imbalances are created.

The Austrians call it malinvestment. Its not just the investors who are responsible for it, but the consumer creating industry through consumption that the economy can't afford because its paid for by borrowed money, leveraged against equity that doesn't exist.

See housing bubble of 2007/8.

Séamusín