tag:blogger.com,1999:blog-1110014885778996459.post8404501969343564065..comments2024-03-29T04:50:03.060-07:00Comments on Idiosyncratic Whisk: Leverage is not a sign of risk seeking, a continuing seriesKevin Erdmannhttp://www.blogger.com/profile/07431566729667544886noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1110014885778996459.post-38104937293349096692017-08-21T04:54:25.778-07:002017-08-21T04:54:25.778-07:00"What would happen if instead of engineering ..."What would happen if instead of engineering contractions in corporate profits, we tried to engineer a continuation of positive profit growth? What if that actually led to rising interest rates for savers, improved negotiating power for laborers, solid returns to pensions, and robust tax revenues? Recently, profits have not been great, and leverage has increased as profits have declined. And, a reason the Fed is giving for tightening is to prevent some sort of push in wage inflation…"--Kevin Erdmann<br /><br />From your lips to G-d's ears. <br /><br />I guess there is a Hyman Minsky concern somewhere, but then if we believe in EMH, or even just in markets, then Minsky is a no-show. <br /><br />It is strange there is a whole tribe of monetary commentators who basically hold that institutional investors go bananas whenever interest rates are too low…Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com