http://www.elusivewealth.com/2009/06/17/income-distribution-then-and-now/ Demystifying Personal Finance Tue, 20 Jul 2010 13:01:44 +0000 hourly 1 http://wordpress.org/?v=abc http://www.elusivewealth.com/2009/06/17/income-distribution-then-and-now/comment-page-1/#comment-29 Francis Thu, 18 Jun 2009 13:13:59 +0000 http://www.elusivewealth.com/?p=240#comment-29 I believe one of the biggest driving factors has been the "cost" of debt (i.e., interest) which has been extremely cheap for a very long time. When the spread between inflation and interest rates is very low, borrowing money becomes close to free. Although, Bernanke has taken a lot of heat (and rightfully so) for some of his policies, it was Greenspan that abandoned his conservative principles from 2000 on, not allowing the marketplace to dictate interest rates. Now, Bernanke continues that tradition. It's gonna get ugly. I believe one of the biggest driving factors has been the “cost” of debt (i.e., interest) which has been extremely cheap for a very long time. When the spread between inflation and interest rates is very low, borrowing money becomes close to free. Although, Bernanke has taken a lot of heat (and rightfully so) for some of his policies, it was Greenspan that abandoned his conservative principles from 2000 on, not allowing the marketplace to dictate interest rates. Now, Bernanke continues that tradition. It’s gonna get ugly.

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