| In order to have successful capital markets, you see the same things happen again and again. Since one man’s debts are another man’s assets, you have to keep interest rates not so high that they crush the debtor, without having them so low that they are bad for the creditor. That leads to cycles of money creation and borrowing that are predictable. These cycles must happen, due to the nature of the dynamic around them. Understanding the underlying mechanics driving these patterns can help you understand what is likely to happen next. |
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