It would appear that Goldman thinks that raising interest rates would be a disaster. What that means is the folks borrowing for 0-1/2% on the yen carry trade, now the Fed carry trade, or getting $10 billion gifts from the NY Fed are concerned that having a cost of capital of any meaningful amount would be bad for business.
I invite Goldman to come down to Hickory Valley, Tennessee and learn a few lessons about how to finance your business and health care with credit cards charging interest rates of 23-30%.
Interest rates up? Our interest rates have been up for a long time. Taxes too. After all, where do you think Goldman’s profits have been coming from?
Related Reading:
