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KPI 4. Allow wealthy people, institutions and governments to get cheap money without real cost of capital, stealing away all wealth from the common people.


If inflation goes up as a result of low inflation rates, debtors benefit. Which is why all the bankers are complaining about the possibility.


banks don't care in the fashion that you imply, they're making money off of interest rate spreads, which doesn't change as the value of nominal amounts fluctuate.


If they didn't anticipate inflation correctly, their profits on past loans that are still active will be lower.


That's what I meant. Common people and those with cash reserves are creditors who lose their money. Wealthy debtors buy assets with the cheap loan money, and are guaranteed to get richer without risk. Because of this, all valuable assets are moving to few hands.


"Common" people in the USA don't have cash reserves. They are debtors, on average.




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