Joseph Stiglitz: It’s a no-brainer to keep rates on hold – MarketWatch

According to Nobel winning economisr, Joseph Stiglitz, higher rates would slow the US economy but it would hurt African-Americans and Hispanic Americans the most.

Source: Joseph Stiglitz: It’s a no-brainer to keep rates on hold – MarketWatch

Of course, since the financial crash of 2008, poor Americans have never really recovered. The top 1% and indeed the top 20% have gone from strength to strength. I’m not sure what Obama has really done to improve the lot of the least advantaged in American society?

Thoughts?

Why are interest rates so low, part 4: Term premiums | Ben Bernancke – Brookings Institution

This is an outstanding article by Ben Bernancke, former chairman of the Fed. It’s an important read in my view. Check it out!

via Why are interest rates so low, part 4: Term premiums | Brookings Institution.

The context is that the Financial Services industry is beginning to spook investors in fixed income securities and fixed income funds that an interest rate rise would be seriously bad news [when interest rates go up, fixed interest securities fall in value, especially long-dated securities). Meanwhile, fixed interest funds are still surprisingly attractive.

I think Ben Bernancke’s article highlights why smart investors are happy to stay with fixed income securities for the time being.

Thoughts?