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    Fed Working Paper - 40% of real corporate profit growth after 1989 was fueled by a decline of interest rates and corporate tax cuts.

    @noahb Yes, and doubly fueled by the combination of the 30yr mortgage and low interest rates. Home mortgages used to be 5 years.
  2. T

    Fed Working Paper - 40% of real corporate profit growth after 1989 was fueled by a decline of interest rates and corporate tax cuts.

    @daniellea I was being facetious and making fun of the headline (which is about profits, not stocks). But the analysis of course is correct - when interest rates are low, people go searching for yield to avoid the real value lost from inflation, so asset prices will increase, including homes...
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    Fed Working Paper - 40% of real corporate profit growth after 1989 was fueled by a decline of interest rates and corporate tax cuts.

    @daniellea Economist says: when companies pay less in interest and taxes, they get to keep more money. Took a PhD to figure that one out, huh?
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