Axel Merk of Merk Investments said something very interesting in this video. With all the talk of income inequality increasing in the Western countries, he said that low interest rates allow already rich people with assets and capital to "gear up" more or leverage more to get further rich. In contrast, the poor who don't have assets or capital and can not get easy loans, fall further and further behind.
Not only that, those who can gear-up with easy money drive asset prices such as houses higher and that pushes the poor even further out of the market.
It seems like a logical observation. Here full video.
start from 17:50 for this topic.
Not only that, those who can gear-up with easy money drive asset prices such as houses higher and that pushes the poor even further out of the market.
It seems like a logical observation. Here full video.
start from 17:50 for this topic.
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