'29, '90 , '82, '08

right the fed sets the interest rates on the money that they give out

but im asking for specific examples of individuals or banks that pulled money from the fed because of the 0% interest rate and invested it in a bad way

@hcaez benchmark for the banks

It isn't the banks who invest, but the people

well yeah individual investing is a decent chunk, but most investment is done by large banks such as vanguard, boa, merrill lynch

these big banks are the primary "customers" of the fed

I wouldn't say most

most investing is done by ordinary people

ordinary companies

Who see this 0% rates and make bad decisions

Rates should be controlled by the free market

you may be surprised but its really banks who do the majority of investing in the economy

ordinary people just don't match up to the 5 trillion of assets that vanguard has alone, even when you collect the people in large groups

I'd say it's both, either way it does cause malinvestments.

I can't give specific examples

But thats just the case

The way humans do it

@chad what are you studying

well i'm not really sure how to show you how institutions trade more than individuals, no real research on that

but i think the best way is to look at the ownership of top companies

apple is a bit over 60%, amazon, is around 60%, alphabet is 70, netflix is over 70, facebook is over 70

the vast majority of companies are owned by institutions such as those banks i mentioned before, individuals are usually only a few percent of total holders

Trade ?

malinvestment is generated by excessive and unsustainable credit expansion to businesses and individual borrowers by the banks.

that’s my point

All due to central banks lowering interest rates and increasing money supply

percentile is a cool word

I suppose so

Imagine being conservative

🤔

Imagine thinking that just because someone has more than you that they owe you some of it

@Leo (BillNyeLand) the problem is you think wealth is distributed but it’s earned

if I worked for that extra cake then I deserve it

well again, I wasn't referring to individual ownership of stock

most companies are owned by institutions who take money from the fed

it's this investment that allows these companies to grow

They take investments

yeah of course i mean borrow

the 0% interest rates enourages this lending practice